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Power swings to sellers

Power swings to sellers

Category: Mortgages

Updated: 19/10/2009
First Published: 19/10/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The balance of power in the housing market continued to swing towards the seller in October, a month in which the average price of property shot up by 2.8 per cent.

It was the largest October rise in six years and, as a result, the typical home is now being placed on the market at the price of £230,184, almost £6,200 higher than in September, according to Rightmove.

It also means prices are 0.2 per cent higher than in October last year, the first time a year on year increase has been recorded since June 2008.

Meanwhile, the number of new properties that came to the market during the month amounted to 95,000, a 36 per cent decrease on the figure reported two years ago.

With around 22,000 of these properties currently exempt from stamp duty, the report noted that some sellers appear to be looking to cash in before the temporary rise in the threshold comes to an end in January.

As a consequence, it is suggested an extension of the stamp duty holiday could prove beneficial to the market as a whole.

"Sellers of properties which benefit from the temporary stamp duty exemption form a substantial sector of the market," said Miles Shipside, commercial director of Rightmove.

"They will be hoping that buyers who are unable to transact at the moment will maintain their interest into the new year when properties are effectively one per cent more expensive."

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