LONDON, June 18, 2012 /PRNewswire/ --
Rightmove's June House Price Index finds that average asking prices increased by 1.0% over the past month to now stand at £246,235, a third consecutive monthly record. However, while Rightmove's index shows sellers' prices are now 2% up on August 2007, the month before the UK economy faced the run on Northern Rock, they have fallen considerably in real terms when compared to retail price inflation over the same period. In spite of sellers' current record price aspirations, in real terms they are still an average of 13% lower. London is the only region where there has been an inflation-busting increase over the same five year timescale, with asking prices 3% ahead of the national Retail Price Index (RPI). The new asking price record is driven by a more robust market in the south of the country, with new regional price records set in London and the South East this month.
Miles Shipside, director at Rightmove comments: "While the national average price of property coming to market has set new records in each of the last three months, sellers should not break out the bunting in celebration until they have done their homework. Agents report a two-tier market where those who can afford to price realistically are selling, while those who are equity-poor are struggling to sell as they often have to price up to make any prospect of a move viable. The traditionally more active spring window is closing and a summer of sporting distractions underway."
London is the only region where average asking prices have outpaced inflation and is 3% ahead since August 2007. The other nine regions of England and Wales have seen double-digit percentage falls in new seller asking prices when adjusted for inflation, with Wales the worst performing where real prices are now 24% lower than August 2007.
Shipside adds: "This reduction in real house prices would be great news for home-movers if their wages had kept pace with inflation and the return of mass-market mortgage finance was just around the corner. The more property-affluent Londoners are the exception, and in the capital the more common rule of thumb is that the rich have got richer."
For further statistics and to download the Rightmove June 2012 House Price Index please visit - http://www.rightmove.co.uk/news/house-price-index or search for local house prices at http://www.rightmove.co.uk/house-prices.html
Rightmove Press Office, firstname.lastname@example.org, +44(0)207-087-0700