Rightmove raises forecast for this year's house price rises to 6%

Rightmove has this morning raised its forecast for house price inflation to 6% for this year – above the 5% cap suggested by the RICS to trigger action by the Bank of England.

It has adjusted its forecast – which it started off the year at 2%, raising to 4% in July  – despite a 1.5% drop in asking prices over the last month. The 1.5% fall was measured both across the country and, separately, in London.

The current average asking price is £245,495, down from £249,199 a month ago, while in London the current average asking price is £493,748, down from £501,067.

However, Rightmove said that two weeks ago, new sellers began asking higher prices again and predicted an autumn price surge.

The site also says that new seller numbers have fallen by 9% over the last month, while traffic has been up 20% compared to a year ago, meaning that the imbalance between supply and demand has grown.

Rightmove measured 96,330 properties coming to the market over the last month, the lowest total since February, and only 0.5% ahead of last year’s new listings.

The average stock per estate agency branch is now 70, down from 72, as the amount of property coming off the market exceeds the amount coming on to it.

Despite this summer’s drop in asking prices for properties new to the market, asking prices are still up by 7.2% – equating to an average of £16,506 – so far this year.

Rightmove director Miles Shipside said: “Sellers have yet to respond en masse to increased buyer demand. Potential sellers are still cautious and a return to a volume market remains elusive.

“Those that think the housing market is nearly back on its feet are missing the fact that the confidence and ability to take on extra debt have a considerable time lag, and many potential sellers require green stalks of recovery rather than just green shoots.”