Record high property asking prices in the UK

Asking prices for property in England and Wales rose to a record high this month, a survey showed yesterday, with house price inflation accelerating despite expectations for a much weaker housing market this year.

Property Web site Rightmove said average asking prices rose 2.2 per cent on a year ago between April 13 and May 10 to hit an average £242,500, compared with a 1.3 per cent annual rise in the month before.

Prices increased 1.2 per cent on the month. The figures are not adjusted to take seasonal factors into account but suggest there is may still be some momentum left in the market as it trends lower.

Economists are predicting falls in house prices of about 10 per cent this year and Bank of England policymaker David Blanchflower has warned prices could dive by about a third unless aggressive, immediate action is taken.