Rightmove: Housing market on the turn

The UK housing market is starting to show a slight upturn, with the average asking price rising 0.5 per cent between September and October this year,

11:57 17 October 2005

The UK housing market is starting to show a slight upturn, with the average asking price rising 0.5 per cent between September and October this year, according to new figures.

A survey by property website Rightmove found that optimism is returning to the market, with the number of unsold properties falling slightly, as the gap between asking prices and buyers' offers closes.

The increase in average house price is the first reported by Rightmove in six months.

The report estimates that prices are up 1.5 per cent compared with the same period last year, indicating that a dip in prices over the summer has come to an end. The latest figures cover 109,996 properties put on sale by estate agents from September 11th to October 8th 2005.

The Rightmove study found that asking prices rose over the month in all regions, except in the West Midlands, Wales and East Anglia. The company now predicts that buyers' confidence is returning to the market and prices will start to stabilise.

The report states: "The combination of more realistic asking prices, improved affordability and a possible further cut in interest rates gives cause for some autumn optimism."

Rightmove director Miles Shipside commented: "Now we have touched down at a sustainable level of pricing, buyers and sellers are gaining in confidence.

"However, dont expect the market to take off again until a refuelling by more first time buyers, lower mortgage rates, and a continuation of realistic pricing by sellers and their estate agents."