The average house price is now £252,487.
The average house price has risen by 0.3% from Q2 to Q3 and by 0.9% on an annual basis, estate agent Benham and Reeves has found by combining house price indices.
By combining house price indices, Benham and Reeves found that the average price now sits at £252,487.
In London, the average property value climbs to £513,180, up 0.2% in Q3 on the previous quarter although values in the capital are still down 0.8% on an annual basis.
Marc von Grundherr, director of Benham and Reeves, said: “An over-inflated asking price is a common occurrence in the market and one often driven by a seller’s emotions coupled with the tendency for an agent to overvalue in order to win business.
“However, with political uncertainty causing a large degree of market turmoil, we’ve seen many sellers lower their asking price expectations in order to secure a sale.
“As a result, there has been a slight uplift in sold prices as buyers agree to meet in the middle, however, the deficit between what we believe our homes are worth and what buyers are actually paying remains rather large.
“As we enter a new decade we may see this gap continue to close, but the likelihood is that as market activity heightens we will once again see asking prices increase as buyer activity returns and UK home sellers chance their arm at a higher price point.”
Tough market conditions have also caused the average asking price expected by home sellers to fall quarter to quarter, although the drop has been more marginal at -0.4%.
At £306,321, the average asking price in Q3 is still some 36.5% higher than the mortgage approval sum.
Furthermore, the current average sold price is £234,075, 23.6% lower than the current average asking price.
This is despite sale prices rising 2.1% on the previous quarter.
