Record high UK property asking prices in May

Record high UK property asking prices in May


LONDON – Asking prices for property in England and Wales rose to a record high in May, a survey showed on Monday, with house price inflation accelerating despite expectations for a much weaker housing market this year.


Property website Rightmove said average asking prices rose 2.2 per cent on a year ago between April 13 and May 10 to hit an average £242,500 (US$472,000), compared with a 1.3 per cent annual rise in the month before.


Prices increased 1.2 per cent on the month. The figures are not adjusted to take seasonal factors into account but suggest there may still be some momentum left in the market as it trends lower.


Economists are predicting falls in house prices of about 10 per cent this year and Bank of England (BOE) policymaker David Blanchflower has warned prices could dive by about a third unless aggressive, immediate action is taken.


However, interest rates are unlikely to come down fast given worries over inflation and, after a decade in which house prices nearly trebled, BOE Governor Mervyn King has indicated a moderation in prices is probably needed. – REUTERS


Source: Business Times


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