"With mass-market buyers still sitting on the sidelines, the size of the active market is a lot smaller, making it easier for an upswing in activity to feed through to an upturn in prices"
- Miles Shipside, director at Rightmove
Britain's home sellers increased asking prices for a fourth month in a row in April, amid a shortage of properties for sale, according to Rightmove Plc. The average home prices in the U.K. surged 2.1% from March, reaching 244,706 pounds ($376,000). At the same time, in London prices, however, fell 0.5% compared to the previous month. Country's asking prices rose 6.9% in the first four months of the year and were 0.4% higher on a yearly basis. As to the next several years, growth will accelerate to 1.9% and 2.5% in 2014 and 2015, respectively.
"With mass-market buyers still sitting on the sidelines, the size of the active market is a lot smaller, making it easier for an upswing in activity to feed through to an upturn in prices," said Miles Shipside, director at Rightmove. "This should not be confused with an overall market recovery, as while spring may be here the ongoing chill of the recession is still in the air."
In a separate report, the Ernst & Young Item Club said that the U.K.'s economy is expected to grow less than previously was expected this year, as further bond purchases by the BoE may do little to stimulate the recovery. Gross domestic product will expand by 0.6% in 2013, compared with a January forecast of 0.9%.
© Dukascopy Bank SA