New sellers in February have increased their asking prices by 3.1% to an average of £230,030, according to Rightmove.
The firm says that the beginning of 2011 is very much a repeat of 2010 and expects 2011 to see the ‘average’ buyer of yesteryear locked out of the market.
New sellers coming to market this month mimicked those of February last year, raising their asking prices by 3.1% in the month to an average of £230,030, leaving year-on-year prices virtually the same too (+0.3%). With lenders stating that they expect mortgage lending to remain static at around 2010 levels throughout 2011, and new seller numbers practically unchanged year-on-year what might have been seen as a passing phase of low transaction levels in the housing market now looks set to be the norm for the foreseeable future, Rightmove says.
Miles Shipside, director of Rightmove, said: “Any hopes that transaction volumes may be on the springboard preparing to return to historic norms will have been dashed by lenders’ predictions that 2011 lending volumes will match 2010’s dire levels. ‘Mr Average’ will be left out in the cold in the buying and selling game unless the beneficiary of a hereditary hand-out. The current subdued market volumes are set to be the new norm unless the seemingly never ending discussions between government and mortgage lenders find some way of increasing ‘Mr Average’s’ access to lower deposit mortgages without pricing them out of the market.””