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Residential

Property prices increase every month this year

Q3 2013

Average asking prices of properties in the UK have increased every month this year – a further sign of renewed confidence in the market.

Average asking prices of properties in the UK have increased every month this year – a further sign of renewed confidence in the market.

The latest data from Move with Us reveals growing optimism among sellers who believe they can now get more money for their home.

Overall, average asking prices have increased by around 3.55% annually and 2.19% in the second quarter of 2013, reaching £240,238, the highest price in five years.

Rises in the south, particularly Greater London, have fuelled the nationwide growth. For instance, sellers in the capital appear to have become more confident through the first half of 2013, with asking prices increasing month-on-month.

By June, the average asking price in the region was the highest on record at £380,904 – rising 6% from the start of the year and adding £21,585 to the average home.

Elsewhere in the South, prices rose by 2.84% to £308,444 between April and June in the South East and 2.64% to £262,727 in the South West.

In East Anglia, meanwhile, prices jumped by 1.61% to £255,564. Overall, these four regions have accounted for 45% of the total new listings on the market during the second quarter.

“The positivity of the South seems to have had a ripple effect through the East and West Midlands which have reported increased asking prices and faster selling times,” commented said Robin King, director of Move with Us.

“In the Northern regions there have been some signs of improvement but the market here has moved at a much slower pace than in the South.

“We now wait to see whether the property market will suffer from the usual seasonal slowdown over the summer and this will determine whether or not this positive spell is short lived or if there will be sustained demand.”

The biggest indicator of the market showing significant improvement is the average number of days that it takes to sell a property. Across the UK as a whole, days to sell have fallen 27.7% in the first half of 2013 from 144 to 104 days.

London continues to be the best performing region on this front, with the average time to sell a property in the capital falling to just 71 days in June.

James Mackenzie, who heads up Strutt & Parker’s Country Department, concluded: “These figures show that confidence is creeping back into the market and there is now a growing sense of optimism for the typically busy Autumn period. I predict that we will see increased demand from both ends of the market - downsizers looking for the perfect home to move into with minimal additional costs, and families looking to move up to the next rung of the ladder."