Rightmove reports another record high for asking prices

The price of property coming to the market has hit anoher record high, up 1.1 per cent over the past month according to Rightmove.

The increase is equivalent to £3,547 and takes the average asking price for homes new to the market to £313,655, exceeding the previous high of £310,471 set in June 2016. 

Rightmove says this has been driven by strong buyer demand with the highest number of sales agreed at this time of year since 2007, before the credit crunch. It says that while the run-up to the June 8 General Election creates a degree of uncertainty and often a pause in activity, this strong set of figures should help mitigate pre-election jitters.

“There are signs of a strong spring market with the number of sales agreed achieved at this time of year being the highest since 2007. It remains to be seen what effect the run-up to the snap election will have, though any slowdown in activity will be counter-balanced by the market’s current fast pace” says Miles Shipside, Rightmove director and housing market analyst.

In the first-time buyer sector of two bedrooms or fewer, Rightmove reports further record prices and strong buyer activity, with a 6.5 per cent annual rate of increase. However, this is tempered by a slower pace of increase further up the market, with an overall annual rate of increase of 2.2 per cent - actually the lowest recorded since April 2013. 

This month’s 1.1 per cent rise is also weaker than the average 1.6 per cent spring-boosted surge of the last seven years.

“Strong buyer activity this month has led to 10 per cent higher numbers of sales agreed than in the same period in 2016. This large year-on-year disparity should be viewed cautiously as the comparable timespan in 2016 saw a drop in buy to let activity with the additional second home stamp duty” says Shipside.