Rising asking prices make homes unaffordable to home buyers

House Prices

Property prices have risen but consumers do not want to buy.

Rising property prices are turning off potential buyers from entering the property market.

Home buyers are showing a reluctance to make a purchase after sellers increased their asking prices by £4,000 this month.

The rise means that the price of property in the UK has increased by £13,000 since the beginning of the year. Estate agents have urged sellers to reduce their prices to secure a sale and address the imbalance of high prices and low purchase power.

Miles Shipside, director of Rightmove, said: “With buyers still struggling to raise the necessary finance, the net result has been the biggest jump in unsold stock on agents’ books that we have recorded in nearly four years. While stock levels normally increase during the first half of the year, this is a larger increase than normal. With government cuts starting to bite and interest rate rises still expected in the second half of the year, those who are serious about selling should look to price more keenly in the spring selling season”.

Mr Shipside explained that the extra public holidays and the Royal Wedding may adversely affect the property market due to an expected reduction in the number of transaction levels.

He said: “Britain’s bank holiday bonanza could prove an unwelcome distraction for the spring housing market if potential buyers take short breaks and holidays rather than pursuing their next move. At a time when all eyes are on the House of Windsor, will enough eyes be on the houses of those looking to sell in Britain’s over-stocked housing market?”