The UK’s biggest property website reported the biggest increase in the average asking price for October since 2002 - leaving sellers with more bargain power and negotiation space.

According to the UK’s Biggest Property Website, the average asking price across the country has increased by 2.8% in October - leaving the average house price at £230,184. This monthly increase in prices is seen to be the biggest growth for October since 2002 and it contributed to the annual 0.2% rise compared to the figure last year.

Particularly, October’s asking price in London leads to the UK’s overall growth in asking prices with a massive 6.5% rise in London’s asking price being reported in the past month standing at an average of £416,157.

Reasons for increase

1. Shortage of property

Some homeowners are scared to move due to the worry of high unemployment rates and reluctance to take on more debts under the economic market - that inevitably resulted in the low availability of homes on sales within the property industry.

2. Increase in demand

More individuals and first-time buyers are interested in purchasing their own properties under the economic climate; especially the demand from the foreign buyers, which has increased significantly due to the weakness of Sterling Pounds in the past year.

The low supply and high demand trend in the property market seem to be the most important factors for the enormous increase in asking prices. This benefitted the sellers with more bargaining power and negotiation spaces - they can now test the buyers with higher asking prices.

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