Rightmove Doubles 2013 Forecast as 'Aggregation of Marginal Gains' Fuels 4.8%
LONDON, July 15, 2013
LONDON, July 15, 2013 /PRNewswire/ --
Rightmove reports a seventh consecutive monthly rise in the price of property
coming to market, up by 0.3% (+£860), and the second successive national
record. New sellers are now asking 4.8% (+£11,561) more than a year ago.
Several factors suggest this is a broader-based recovery, fuelled by the
'aggregation of marginal gains'.
Miles Shipside, Rightmove director, comments: " The market is currently
benefitting from the ' aggregation of marginal gains ' where incremental
improvements across a range of market drivers help to slowly but surely build
momentum. Rightmove ' s lead indicators show increasing enquiries to agents
and developers, new sellers and marketing prices. An important signal for a
broader-based and sustainable recovery is that all regions of the country now
have higher prices than a year ago " .
Confidence on the up: early findings from Rightmove's latest Consumer
Confidence Survey of more than 25,000 home-movers show that 62% of home-movers
expect property prices to be higher a year from now, double the 31% recorded a
More movers and more to come : HMRC's most recent year to date figures show
that transactions are up by 5% on 2012, while Bank of England figures for
mortgage approvals year to date are up 6% on last year. In a clear signal of
new business building in the pipeline, Rightmove's email enquiries to agents
and developers are up 18% year to date compared with 2012.
Positive borrowing environment: markets don't expect a base rate rise until
the latter half of 2016 and the Funding for Lending Scheme (FLS) is now
fulfilling its promise of creating competition that eases mortgage rates and
increases availability. On top of that, Help to Buy , currently available for
new build only (until January 2014), is capturing prospective buyers'
interest. The Homes and Communities Agency reports that 7,000 reservations
have already been made.
Rightmove doubles 2013 price forecast from 2% to 4%: given what we've seen
over the first half of this year, we expect the average asking price of
property coming to the market in England and Wales will end 2013 around 4%
higher. In recent years, the gains of the first-half of the year have been
eaten away in the second. Between June and December last year, asking prices
fell by 7%. The signs are that prices in 2013 will not dissipate as they have
in recent years.
Contact details: Rightmove Press Office, email@example.com ,
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