October record rise in house prices

Consultancy Rightmove said sellers’ asking prices had risen 2.8 per cent on average this month.

The increase was also the biggest seen in any month since February 2008.

A dearth of homes coming onto the market has pushed up prices, with transaction levels 54 per cent down on 2007.

However, Rightmove said it thought the end of the stamp duty holiday and VAT reduction on 1 January, tighter public and personal spending, and the possibility that a new government could abolish home information packs, could dampen appetites to move house.

Rightmove’s commercial director Miles Shipside said: ‘Political uncertainty can cause a period of slower activity in the housing market, and there appears to be a lot more at stake at next year’s general election to make would-be movers pause for thought.’

A survey by the company showed 1 in 10 of a sample of more than 30,000 respondents believe prices will be lower in a year’s time compared with nearly 7 in 10 at the start of the year. More than half of the people surveyed expected prices to be higher next year rather than levelling off.

Meanwhile, asking prices in London rose by a record 6.5 per cent.

Again, the rises were driven by a low number of homes coming onto the market – 17,000 – compared with 20,000 coming off.

Mr Shipside said the thin market led to wild price variations and ‘did not constitute a return to boom times’.

Have your say

You must sign in to make a comment