U.K. House Prices Rise Most In 10 Years

Average asking prices for a property in the U.K climbed at its fastest pace in almost ten years in February due to strong demand from cash-rich market sectors, the latest survey by Rightmove showed Monday.

New sellers increased average asking prices by 4.1 percent, the highest monthly increase since April 2002. This followed a 0.8 percent decline in the previous month.

"In part, this is fuelled by the cash-rich sectors of the market where buyer demand is exceeding suitable property supply, though there is also evidence of increasing housing market confidence," the property website said in a report.

The average asking price stood at GBP 233,252, 1.4 percent higher than last year. Average weekly listings were 30 percent below pre-credit crunch levels, and new seller numbers continue to be as depressed as those of 2011.

Upwards price-pressure existed in active cash-rich micro-markets with stock shortages. London prices are now less than 1 percent off their all-time high, while new listings declined 9 percent on this time last year.

"We're seeing a strong 'spring bounce' in asking prices this year, but the ball is still a lot smaller than it was before the credit crunch as market volumes are constrained," Rightmove Director Miles Shipside said.

"The biggest jump in new sellers' asking prices for nearly ten years indicates there is pricing power if you are selling the right type of property in the right place where enough potential buyers have access to funding," Shipside said.

Rightmove said that after four years of constant economic uncertainty, some property consumers seems to have accepted current market conditions as the new norm. According to the survey, around 60 percent of the 32,000 questioned felt the current housing market favors buyers, a clear indication that there is buyer bidding- power in their area to get a lower offer accepted. (Provided by RTTNews)