Record asking prices driven by pent-up demand
Led by the top-of-the-ladder sector, the average asking price of property coming to market this month reaches a new record of £375,131. Momentum continues in the spring selling season with more buyers, sellers, and agreed sales than last year. However, the market remains price-sensitive, while higher than-anticipated mortgage rates and long completion timelines pose additional challenges.
- The average price of property coming to the market for sale reaches a new record of £375,131, rising by 0.8% (+£2,807) in the month, as the momentum of the Spring selling season exerts some modest upwards price pressure :
- The market remains price-sensitive with average asking prices just 0.6% higher than a year ago
- The top-of-the-ladder sector is still leading price growth, with average prices up by 1.3% compared with last year
- Pent-up demand from would-be buyers who paused their plans last year is a key driver behind increased home-mover activity despite mortgage rates remaining elevated for longer than anticipated:
- The number of sales being agreed during the first four months of the year is 17% higher than last year, outstripping the 12% increase in the number of new sellers coming to market
- Despite these positive lead indicators for higher transaction levels this year, the painful average of 154 days between agreeing a sale and legal completion remains a challenge for both agents and movers:
- With 62 days on average needed to find a buyer before the legal process even begins, would-be sellers hoping to be in a new home for Christmas need to take action now
- Rightmove’s analysis shows that properties that need an asking price reduction take more than three times longer to find a buyer than those that do not, giving sellers who price right from the outset the edge to sell more quickly.
The average price of property coming to the market for sale rises by 0.8% this month (+£2,807) to a new record of £375,131 as the momentum of the Spring selling season exerts some modest upwards price pressure. May is typically a strong month for price growth, with new price records having been set in May in 12 of the previous 22 years. Price growth is still led by the largest-homes, top-of-the-ladder sector, with prices in this sector up by an average of 1.3% compared with last year. However, since the last price record set a year ago in May 2023, average prices are only 0.6% higher overall, a reminder that the market remains very price-sensitive.
You can download the full National Report: Rightmove House Price Index – May 2024 below…
“Some predicted that property prices would suffer sharp falls and take a while to recover following the Bank of England increasing the Base Rate up to 5.25%, where it has remained since August 2023. However, the momentum of the Spring selling season has exerted enough upward price pressure to reach a new record asking price. The top-of-the-ladder sector is still leading the way, while from a regional perspective the North East, with the cheapest average prices in Great Britain, has seen the strongest price growth. However, it’s important to remember that prices overall are still only 0.6% ahead of this time last year. The market remains price-sensitive, and with prices reaching new records in the majority of regions and mortgage rates remaining elevated, affordability for many home-buyers is still stretched.”
Tim Bannister Rightmove’s Director of Property Science
