Rightmoves' Prediction on Prices

The latest report from Rightmove has said that Home sellers' expectations have 'romped away from reality' and asking prices are heading for a fall.  So far in 2011, house prices have risen and are now up 8.1%, or £17,984, according to the property website.

From May to June 2011, the average price rose 0.6%, or £1,520, to £240,394; these are the prices properties are placed on the market.

The prediction by Rightmove now though, is a 7% drop in the next six months.  The reasons for this are quite clear; mortgage approvals are running at half of pre-crisis levels.

Miles Shipside, Rightmove Director said: 'With mortgage approvals stuck at half the normal level, the number of sellers who can find a buyer is likely to be reduced by a similar proportion.

'Sellers will need to paddle hard to catch a buyer with funding, or they will find themselves well and truly grounded and unable to move home.'

'High levels of unsold stock and record asking prices cannot remain happy bedfellows for long, so we expect to see this romp away from reality to reverse itself in the second half of the year.'