UK asking prices edge higher

Asking prices increased across most of England and Wales between March and April, with the exception of London where values continued to fall, while prices also rose in Scotland, fresh figures show.

In England and Wales asking prices increased by 0.6% month-on-month with the annual rate rising to 2.8%, according to the latest house price index from Home.co.uk; the same measure was 7.5% 12 months earlier.

Growth in property prices took the average asking price to £304,740 in England and Wales, while in Scottish prices increased to £181,266.

In Greater London, asking prices remained unchanged month-on-month at £544,103, but dropped 1.6% year-on-year. The only other region to see rents fall on an annual basis was the North East of England.

The greatest level of month-on-month growth was recorded in the West Midlands where prices increased by 1.2%. Annual asking prices were up 4.5% in the region.

In Wales, there was a 0.8% month-on-month rise in asking prices, while rents were up 1.6% year-on-year to an average of £188,445.

Spring and early summer are traditionally busy periods for the UK housing market, which partly explains why property prices are rising across many parts of the country, but a general shortage of homes on the market is also contributing significantly towards the rise in home values. 

Despite the recent pick-up in values, Home.co.uk forecast that asking prices will fall in the coming months, especially in London and the South East.

Doug Shephard, director of Home.co.uk, said: “The UK property market is heading into a period of much lower growth overall. The national growth figures will remain muted due to the poor performance of London, which could last for some considerable time.”

“However, investors both large and small are busy adding to their portfolios in higher yielding regions, and this is keeping prices buoyant and adding to market momentum in most regions outside of London and the South East.”