UK house asking prices at highest level ever - data from Rightmove

News that the average price of a home in the UK rose this month, up 1.2% from last month gives a misleading impression of the market.

The rise has been caused by optimistic sellers puting their homes on the market at unrealistic asking prices. In the words of Rightmove's Miles Shipshide, "'New sellers can see the storm clouds overhead but seem to believe it's only raining on other people".

The figures are distorted as if the north of England is stripped out, asking prices actually rose 6% in the south.

At Chard London estate agents we think these figures are unsustainable. There's almost twice the number of properties coming on to the market, whilst the number of buyers looking has declined. Whether this is a lack of confidence or due to more tangible reasons like lack of credit is irrelevant. The simple truth is that if you want to sell your property in London the price needs to be competitive.

Buyers are out there but they are not prepared to bid, out-bid and then further out-bid to secure a new home. They don't need to; they have a wider choice of flats and houses for sale across most areas than at any time in the last three years.

We're seeing what we believe to be excellent offers being turned down by vendors who are happy to wait for the "right price". One fear, with rapidly rising stock, is that when a significant number of these people realise that the "right price" was the one they were offered three or six months ago, a rush to sell could depress prices further.