NW house prices on the rise, says Rightmove

Michael Hunt

Average house prices in the North West have risen £7,323 in the last month, according to the latest monthly index from online estate agents' portal Rightmove.

The average price in the North West in June 2009 was £170,562 compared to £163,239 in May.

The 4.5% monthly change still leaves the region at a -3.7% gap to the June 2008 average of £177,158.

The UK average asking prices of properties new to the market fell for the first time in five months, suffering a decrease of 0.4%.

Rightmove said in spite of a hesitation from new sellers, this year's price recovery still sees asking prices up 6% since January, fuelled by a shortage of saleable property and the equity-rich calling the bottom of the market.

The online estate agency said shortage is most acute in the south, which indicated a north/south divide in future house price growth. New supply was down 45% in southern regions compared to 40% in the north.

Rising lender margins and interest rates were also seen as preventing many "equity-poor" first-time buyers from "mopping-up" less saleable stock and repossessions.

Miles Shipside, commercial director of Rightmove, said: "Interest rates for fixed-rate mortgages are now increasing, in line with money-market expectations of higher medium-term interest rates. Property deals appear within the grasp of cashstrapped first time buyers, but every rise in fixed rates frustratingly nudges them a bit further out of reach.

"Lenders need to be wary not to choke off the recovery in affordability and activity by punishing the returning buyers with ever widening margins."

Your Comments

Subscribe to our newsletter