House prices may not be sustainable

Grovelawn Financial News 21/10/2009

← Property prices rise for the fourth month running | News For October 2009 | Swinton fined £770,000 →

London prices shoot up.

The expected re emergence of big City bonuses is helping to boost the feelings of a further boost to the property market in London. Asking prices have already jumped by 6.5 per cent in the period September/October and an average price of a property in the capital is now £416,157.

The property website Rightmove says that this is the highest recorded rise in prices since its records began in 2002. During the months before, the average price in London was £395,560. The high asking prices are being recorded across the UK and the average has reached around a 2.8 percent rise.

Part of the reason for the high asking price for many properties is due to the lack of decent housing stock coming on to the market and acerbated by the lack of mortgage funding available from lenders.

The only areas that have not seen any significant price rises are the North and East Anglia. Yorkshire saw a rise of more than 5.3 per cent in asking prices; overall, October has been a surprisingly buoyant month when it is usually much quieter.

Estate agents, in general, have said that they are concerned that prices have increased too much in recent months and are unsustainable. They have raised fears over the raising unemployment figures and the imminent election next year which they feel will also have a slowing down effect on the market.

← Property prices rise for the fourth month running | News For October 2009 | Swinton fined £770,000 →

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