Rightmove says there has been a rise in the average asking price in the UK, but says that the housing market recovery could be threatened by the prospect of a hung parliament.

The average house price in the UK has increased by 2.6% in April to £235,512, says property website Rightmove, as the much-improved weather puts a spring back into the step of sellers and potential buyers.

Rightmove, which advertises property for over 90% of all UK estate agents, said that new sellers looking to market their property have pushed to one side any pre-election jitters and economic uncertainty and increased their average asking prices by 2.6% or £5,898. This compares with a rise of just 0.1% in March.

All three of the UK’s main house price indexes – Halifax, Nationwide and Rightmove – noted an increase in the average monthly house price in March, but Halifax and Nationwide are yet to reveal their results for April.

Miles Shipside, Rightmove’s Commercial Director says potential buyers and sellers seem to be ignoring the uncertainties which continue to persist with the global economy. The upcoming general election has also done little to hamper spirits.

“With weather disruptions out of the way, more sellers are coming to market and they appear to be ignoring the uncertainties facing potential buyers. Prices are up, but so is choice, and the two are not happy bedfellows in the longer term.

“Many sellers will be potential buyers as well, and it appears as though they are trying to get higher prices for their property – some are hoping to skip a rung on the housing ladder and others are simply trying to ensure that the finances stack up for their move. They need to be careful that they do not miss the spring window by being over-ambitious, and should scrutinise their pricing wearing their hat of a buyer instead of as a seller.”

The Council of Mortgage Lenders (CML) said today that mortgage lending in March grew by 24% to £11.5 billion – its biggest monthly jump for more than a year. Although the CML was quick to point out that total mortgage lending in the first three months of 2010 is still substantially lower than in the last three months of 2009.

The CML has a much more cautious view of the housing market: “Overall, housing and mortgage activity remains subdued, but is comfortably higher than in the depths of the recession a year ago,” commented CML Economist Paul Samter.

“Despite the increase in activity late last year and a subsequent fall early this year – due to the end of the stamp duty holiday – the underlying position looks to have barely changed. But with the gradually improving economic backdrop and interest rates still low, we continue to expect a gentle improvement in market conditions later in the year.”

As the impending general election continues to be a source of debate, Shipside adds that a hung parliament would be a catastrophe for the housing market: “As far as the housing market is concerned, any election result is better than no result. In the event of a hung parliament, the market is likely to go into suspended animation until greater certainty emerges.”