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Property market recovery continues

Property market recovery continues

Category: Mortgages

Updated: 19/04/2010
First Published: 19/04/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Home sellers have ignored pre-election uncertainty and economic woes to return to the market and increase their average asking price by almost £6K over the past month.

According to Rightmove, there was a 2.6% rise in the price of homes new to the market in April, a stark contrast with the rise of just 0.1% witnessed in the previous month.

The increased confidence of sellers that they can achieve a higher price for their properties means the average home is now listed on the market at £235,512, around 6% higher than a year earlier.

The report also revealed that the number of properties being put up for sale has recovered to levels not seen since before the collapse of Lehman Brothers in September 2008.

Meanwhile, the stamp duty changes unveiled in the Budget are thought to have contributed to increased activity, with those potential first time buyers previously deterred by paying 1% stamp duty over £125,000 now expanding their search into higher price brackets.

"For those who can get a suitable mortgage, acting this spring, especially before interest rates start to rise, may prove to be a wise option," said the property website.

"Many sellers will be potential buyers as well, and it appears as though they are trying to get higher prices for their property. Some are hoping to skip a rung on the housing ladder and others are simply trying to ensure that the finances stack up for their move."

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