Asking prices for UK houses jump again in April
LONDON, (Reuters) – Although prices of houses in Britain increased in April, the momentum in the market for housing should slow down as more people are affected by the increasing cost-of-living crisis.
Rightmove (OTC-:), a property website, reported that asking prices rose 1.6% by March. Its growth was slightly slower than the 1.7% gain in March. Survey results showed that over half of homes are now selling at or above asking prices.
According to the report, other measures show that Britain’s housing markets maintained significant momentum through the first six months of 2022, despite temporary tax exemptions on purchases of property in the second quarter of 2021.
Rightmove was concerned that household budgets would be squeezed due to high inflation and rising taxes. Rightmove also questioned whether the market for housing can maintain its current strength, even though there are no signs of slowing down.
Rightmove’s managing director Tim Bannister explained that although this momentum might not last for long-term due to increasing affordability, it has created a price frenzy in spring because of the large demand from buyers who want too few properties available for sale.