Buyers shun the housing market as stock soars - Mortgages - News - Moneyfacts

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Buyers shun the housing market as stock soars

Buyers shun the housing market as stock soars

Category: Mortgages

Updated: 18/04/2011
First Published: 18/04/2011

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A jump in house prices has not been matched by enthusiasm from buyers, meaning there is a four year high in the number of unsold homes in England and Wales.

The average asking price jumped by more than £4,000 in April, from £231,790 to £235,822 – a rise of 1.7%.

However, this desire for bigger payments appears to be misplaced as the supply of homes is increasingly outstripping demand, according to Rightmove.co.uk

In fact, estate agent branches have reported an average rise in the number of properties on their books going unsold, up from 70 to 74 – the biggest number seen since May 2007.

Sellers keen to offload their homes have been encouraged to 'get serious' in an attempt to entice buyers.

"While stock levels normally increase during the first half of the year, this is a larger increase than normal," admitted Miles Shipside, director of the property website.

"With Government cuts starting to bite and interest rate rises still expected in the second half of the year, those who are serious about selling should look to price more keenly in the spring selling season."

With a number of bank holidays over the next six weeks – including the much anticipated Royal Wedding – a slowdown in activity is expected to continue.

"Britain's bank holiday bonanza could prove an unwelcome distraction for the spring housing market if potential buyers take short breaks and holidays rather than pursuing their next move," added Shipside.

The only exception to the UK housing rules appears to be London, with properties in the capital remaining as sought-after as ever.

Buyer demand for homes in London pushed the average asking price to £431,013 in April – a new record.

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