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UK property prices are continuing to edge upwards, according to the latest quarterly house price index from lettings and sales agent, Benham and Reeves.
The index is based on a combined average from the four leading indices, Nationwide, Halifax, Rightmove and the UK HPI/Land Registry, to show how the UK property market is moving based on both buyer and seller sentiment, as well as looking at the difference in these indices and what they reveal about the state of the current market.
The latest index shows that the current overall average UK property price is sitting at £252,487 having increased by 0.3 per cent on the previous quarter, up by 0.9% on an annual basis.
In London, the average property value climbs to £513,180, up 0.2 per cent on the previous quarter although values in the capital are still down -0.8 per cent on an annual basis.
The latest quarterly data from Nationwide and Halifax shows that the amount UK buyers are committing to borrowing has fallen -0.7 per cent to an average of £224,490.
Tough market conditions have also caused the average UK property asking price expected by UK home sellers to fall quarter to quarter, although the drop has been more marginal at -0.4 per cent and at £306,321, the average UK asking price is still some 36.5 per cent higher than the mortgage approval sum.
This over expectation is also evident when comparing asking prices to sold prices, with the current average sold price coming in at £234,075, -23.6 per cent lower than the current average asking price, although sales prices themselves have crept up 2.1 per cent on the previous quarter.
Director of Benham and Reeves, Marc von Grundherr, commented: ‘An over-inflated asking price is a common occurrence in the market and one often driven by a seller’s emotions coupled with the tendency for an agent to overvalue in order to win business.
‘However, with political uncertainty causing a large degree of market turmoil, we’ve seen many sellers lower their asking price expectations in order to secure a sale. As a result, there has been a slight uplift in sold prices as buyers agree to meet in the middle, however, the deficit between what we believe our homes are worth and what buyers are actually paying remains rather large.’