Asking prices for new listings reach record high

Recent data has revealed that May saw asking prices for new listings hit an all-time high despite levels of demand softening in the South.

According to Rightmove, newly-listed properties saw growth of 0.8% in asking prices during May – from £305, 732 in April to £308,075. Of the 11 regions, seven observed asking prices hit record highs during the month.

The fastest growth was recorded in the East Midlands, West Midlands and Wales; year-on-year, asking prices in these regions rose in excess of 4%.

At the other end of the spectrum, London saw asking prices drop by 0.2% in comparison to last year, with prices in the South East experiencing the first decline since 2011 at a drop of 0.1%.

Commenting on the figures was Miles Shipside. The director of Rightmove said: “The last time the South East recorded an annual price fall was in 2011, indicating that the softening in the London market is now spreading to its commuter belt, while there are signs that Inner London may be closer to a price recovery.”

CEO of Emoov.co.uk, Russell Quirk commented: “There is still an appetite for homeownership amongst UK buyers evident by the record number of visits to Rightmove, but a lack of commitment is resulting in a reduction in the number of sales agreed.

“This is hardly surprising when you consider the reality gap between the expectations of stubborn sellers and the current market climate. While actual price growth is remaining somewhat static, over-optimism on the side of UK home sellers is continuing to push asking prices ever higher.

“This is becoming a big problem and the widening gap between asking price and sold price will only result in a further decline in buyer interest and a continued market slowdown.”

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