UK house prices rise in March

The average house price rose for the second consecutive month in March, according to online estate agent Rightmove. However, it isn’t all good news as sellers are ignoring the increasing difficulty faced by buyers trying to secure a mortgage.

Rightmove said house sellers should use more intelligent pricing, to avoid stagnation in the housing market. They also called on the government, Bank of England and mortgage lenders to take action to ease problems faced by buyers following the global credit crunch.

House prices have risen by 0.8% in March and 5% over the year, according to Rightmove, even though mortgage lending conditions have become tighter.

Miles Shipside, commercial director at Rightmove, said: “Deals are being put together but tend to be at around 10% below peak boom prices. The challenge to sellers is to get smart and accept this new reality. The best price sellers can achieve has fallen – though they won’t lose out if they are planning on buying as well.”

The statement by Rightmove said that the UK housing market would not experience the sharp fall seen in the US.

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