Skyrocketing UK house prices in May

Your Move, the property people, have released information which appears to be forecasting a 1.65% increase in the exchange price of the average UK property in May 2007.

How is the predictor worked out?

Your Move's agreed sales data (Jan / Feb) which is adjusted to reflect the Land Registry's sales distribution in those months is used to calculate this figure. The predictor anticipates the average house price when it exchanges will rise 1.65% to £179,750 over May 2007, as the market picks up after a slight drop in February.


As agreed prices (the value agreed when a buyer's offer is accepted) continue to rise, this suggests that demand will remain strong in the coming months. Actual agreed prices - typically reached eleven weeks prior to exchange – rose 1.64% on average in April, to £183,761 from £180,803 in March. This follows the same longer term trend of an upward swing in agreed prices, which have risen 7.00% year-on-year.


The data being analysed indicates that agreed prices were also significantly closer to those of sellers' asking prices this month. As a percentage of asking prices, agreed prices were up to 91.83% compared with 91.35% for March 2007.


There is growth in new property coming onto the market, which is believed to be driven by the rush to beat the introduction of HIPs in June. Property agents across the UK are already experiencing an uplift.


The reality is investment in property still seems to remain a very good long term investment.