Rightmove reports 22% rise in number of properties for sale

Monday, 21 January 2013 10:20

Property website Rightmove says that the number of new homes arriving on the market has risen by 22 per cent on 12 months ago in a sign that the UK property market is showing signs of recovery as we head into 2013.

It says that the market should be helped by the “pragmatic” asking prices that new properties are being put on the market for.

New sellers are listing properties at just 0.2 per cent more in January than in December, up from £228,989 to £229,429. This represents a 2.4 per cent (£5,369) year-on-year increase.

Miles Shipside, director and housing market analyst at Rightmove said: “Sensible pricing will help buyer affordability, one of the factors needed to help warm up the market and encourage a recovery from the credit-crunch freeze in transaction volumes.”

Rightmove said that the weekly run rate of new property listings is 11,153 in January, a 22 per cent rise on the 9,108 recorded over the same period a year ago. However, this is still 37 per cent down on the amount of new properties coming to market in 2007 before the credit crunch and the financial crisis.

London recorded the biggest increase in asking prices which were up by 3.6 per cent in January, a rise of £16,492, the largest January increase since 2008 and a 29 per cent year-on-year increase in the number of properties coming to the market.

The report notes that there is an increase in sellers who want to come to market to “give it a go” rather than for forced reasons such as debt, divorce and death.”

Mr Shipside said: “One of the reasons for muted transaction volumes has been sellers putting their move on hold. But Rightmove’s latest research into those intending to put a property on the market in the next 12 months shows that seven in ten are motivated by discretionary factors rather than forced sale drivers such as the ‘three Ds’ of death, debt and divorce.”

He noted that there are signs that the Bank of England’s Funding for Lending Scheme (FLS) is beginning to have a positive impact on the property market.

He said: “There is evidence of greater mortgage lending to support an increase in transaction volumes, albeit modest. The Bank of England’s latest mortgage approvals statistics show a 3% increase from November 2011 to November 2012. This is the highest number of mortgage approvals in November since 2007, as the Funding for Lending Scheme begins to feed through to the market.”

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