Asking prices soar - and so does Rightmove traffic

Rightmove is reporting its highest ever average asking price as a result of a slump in the number of homes being put up for sale in the run up to the general election.

The portal's latest monthly price index shows the typical selling price has risen 1.6 per cent in the past month alone, to a record £286,133 easily surpassing the previous high recorded last June.

At the same time there has been a slump in the number of homes on sale - new sellers are four per cent lower than this time last year, a figure which roughly coincides with data released last week by the Royal Institution of Chartered Surveyors.

Meanwhile Rightmove itself has enjoyed its busiest-ever month in March - website visits were up almost 20 per cent year on year, to a total of over 115 million.

Rightmove commercial director Miles Shipside says: "Failure to meet house-building targets since the 80s, 90s and noughties to match housing demand has been a major factor in upward price pressure in the sales and private rented sectors."

This time last year things looked rather different. There had been an 11 per cent rise in new seller numbers recorded by Rightmove between January and April 2014 - this year, the numbers are four per cent lower.

"While the annual rate of price increases may be dropping back from 5.4 per cent last month to 4.7 per cent this month, it's of little comfort to buyers as even more modest increases stretch buyers' finances into new territory with prices at record average highs" says Shipside.

In a separate report on the market from Reeds Rains and Your Move agency chains, director Adrian Gill says that while prices may still be rising "sales appear to be treading water" with the number of completions scarcely half the typicasl volume for this time of year.