16 March 2015 | By Paul Thomas
Asking prices are just £30 below their peak, according to online estate agent Rightmove.
This month the average asking price reached £281,752 – £30 off June 2014’s peak. On an annual basis, prices were up 5.4 per cent.
Excluding inner London, the average price asked of first-time buyers was £169,414 in March, up 7.6 per cent annually. Second-steppers were asked to pay an average of £235,205, a 7 per cent increase on the previous March.
Rightmove says higher demand and larger buyer deposits are reducing the impact of the Mortgage Market Review.
Rightmove director and housing market analyst Miles Shipside says: “The distraction and uncertainty of an election typically force sellers to price more keenly, though this is often short-lived.
“The MMR laid out a much needed longer-term framework for responsible lending, but within a year its dampening effects have been muted by high demand outstripping supply in many locations and by buyers putting down larger deposits. The price of property coming to market is now just £30 off the record set nine months ago. The MMR has been a positive restraint on what buyers can afford to pay and has assisted in lessening the price rise pace.
“However, with new-build levels remaining low and only a small increase in properties coming to market compared to last month, the supply side is still a critical but missing part of the jigsaw if pent-up demand is to be satisfied.”