Low rates are propping up house prices | City A.M.

Low rates are propping up house prices | City A.M.

HISTORICALLY low interest rates and a weak supply of new property listings are boosting asking prices for UK homes, according to a leading survey released today.

Asking prices on newly listed houses have almost hit a three-year high, according to the Rightmove house price index, jumping 1.7 per cent in April and 1.3 per cent so far this month.

The average listing price for new sellers is now £238,874 across the UK – only 1.5 per cent below an all-time peak in May 2008.

In London, the latest average house price stuck at around £431,000 this month, up 2.6 per cent from the same time last year.

“With Bank of England base rates held at record low levels for the 26th consecutive month, new sellers coming to market continue to postpone tough decisions on price, and are now on average asking their highest prices since June 2008,” the report said.

Given persistently high levels of inflation, however, asking prices are “down by around 10 per cent in real terms” from their peak, Rightmove says.