“Mismatch of Demand and Supply” Boosts Property Prices
Property asking prices increased by 4.1% annually in January 2010 due to the increasing demand and drop in supply within the housing market (the biggest annual rise since March last year).
Research by Rightmove – the UK number one property website – revealed an annual 4.1% increase in property asking prices in January – the biggest annual rise since March 2009; while the monthly price has increased by 0.4% to £222,261 during the five weeks to 9th January.
Rightmove also estimated that the stock availability of the housing market is currently at its lowest level of the century, which suggests that the mismatch between demand and supply will push up the property asking prices in short term.
It also highlighted that its website has hit the highest record in the first full week of the year with 157.4 million viewers – which is 26% higher than the same period last year.
Commercial director of Rightmove – Miles Shipside said, “this rise in asking prices is an early indicator that new sellers in 2010 have the confidence to try for a higher price…With home-movers setting new search records on Rightmove and a lack of property for sale, the decision of post-New Year sellers to ask for a higher price could be a shrewd move.”
Furthermore, the rise in housing prices worries the housing charity – Shelter, who recently did a survey showing that one in five people claimed that they have been forced to delay having children due to the unaffordability to find a place to live. Other than that, around 18% of surveyed people aged 18 to 44 admitted that they have actively delayed starting a family because of the high housing costs.
For those who have owned a property or are planning to get a house should be reminded to get the appropriate home insurance or landlord insurance (depending on the purposes of usage) to protect their properties against any damages.