UK house prices up

Although the housing market in the UK is still struggling, the average house prices are defying the pessimism surrounding the industry as the average house prices are up by 1.2 percent this month.

The average asking price rose to 242,500 pounds in May from 239,521 pounds last month, whilst prices in the capital have increased 0.2 percent.

Prices in six out of ten regions are lower on a year-on-year basis however the picture is very different in the hotbed that is the South East which have increased by 6.0.

Despite the issues surrounding the supply and demand and a relatively static market for property, homeowners in the South East have seen prices rise by 4.2 percent.

East Midlands and East Anglia had the biggest declines, both with 1.5 wiped off the asking prices from April.

Within the Greater London borough, Kingston upon Thames saw the largest increases of 3.9 percent from April compared to Hounslow where home costs fell 4 percent.

Analysts from the UK’s largest property website Rightmove indicate that people are asking too much for their properties in the current market, as it is predicted by the Royal Institution of Chartered Surveyors that house prices will fall about 5 percent this year, and the number of transactions will reduce by up to 40 percent.

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