Home prices edged higher in December

Published 23 January 2012

Residential property prices in England and Wales increased by 0.4% in December compared to the previous month but are still down by 0.8% compared to January 2011, the latest Rightmove report shows.

The property portal report that the average price of a home in England and Wales now stands at £224,060.

The study found that despite healthy interest in buying properties nationwide, led by high demand for homes in London, a lack of mortgage finance is preventing many would-be purchasers from being able to actually buy a property.

Despite a lack of activity in the housing market, property prices are not expected to fall in many parts of the country, due to a lack of supply.

A Rightmove statement said: “Though the willingness or ability of new sellers to come to market remains weak… record levels of search activity [is still being recorded online] as value-seeking buyers face the smallest ever choice of new listings.”

A staggering 44 million online searches on Rightmove were carried out in the first 10 days of 2012, up 27% year-on-year.

Property prices, unsurprisingly, remain strongest in London, while most of regions of England and Wales recorded marginal price declines last month.