Asking prices for UK homes in February see weakest month-on-month increase since 2009

RightMove said this slower than expected price growth was amid factors such as rising consumer price inflation, Brexit worries and tighter lending rulesGetty

The average asking price for a UK house rose 2% month-on-month in February, according to a report published on Monday by Rightmove.

Brexit woes along with tighter lending rules and consumer-price inflation contributed to the slower-than-expected price growth for homes in UK.

Rightmove said the 2% rise translated to £5,986 ($7,431), giving UK houses an average asking price of £306,231 in February. This is the weakest February increase the UK has witnessed since 2009. The period usually sees a rise of about 5% in home asking prices.

Advertisement

When compared on a year-on-year basis, the asking prices were 2.3% higher, which is also low when compared to previous readings. This also marked the smallest rise seen since April 2013.

Rightmove director Miles Shipside was cited by Reuters as saying, "Perhaps we're approaching the territory where many buyers are unable or unwilling to pay what sellers are asking, given the negative combination of rises in the cost of living, tighter lending criteria, and a dose of Brexit uncertainty."

Rightmove is an online real estate portal and property website.

Region-wise, RightMove said no part of the country saw a month-on-month decline in asking prices. While Wales saw the highest increase in asking prices, the South East of England saw the lowest.

Asking prices surged 8.1% in February in Wales, taking the average homeprice in the region to £177,556. Meanwhile, South East of England saw prices remain unchanged, with the average asking price for a home at £404,951.

Shipside has warned house sellers of ambitious price tags. "Over-pricing loses you that vital initial interest and impetus, and buyers often have reservations about a property that has not sold as quickly as others or has had a price reduction," he was quoted as saying by the Belfast Telegraph.

Rightmove said that demand for UK homes remained strong despite the sluggish increase in asking prices. The company said that it saw over 131 million visits in the first month of 2017, which is three million more visitors when compared to January 2016.

Advertisement

© Copyright 2017 IBTimes Co., Ltd. All Rights Reserved.