Property price hits record levels in May

UK property price

According to a new report by Rightmove, homes up for sale in May cost an average of £375,000, up 0.8% on last month

The average price of UK property coming to the market hit record levels in May, rising by £2,807, as the spring selling season lent itself to the recovery of the housing market.

According to a new report by Rightmove, homes up for sale in May cost an average of £375,000, up 0.8% on last month.

The property portal said 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.

Rightmove said: Price growth is still led by the biggest-homes, top-of-the-ladder sector, with prices in this sector up by an average of 1.3% compared with last year.

Nonetheless, since the last price record set a year ago in May 2023, average prices are just 0.6% higher overall, a reminder that the market remains very price-sensitive, it said.

In London, property prices increased by only 0.1% to £697,000, but the region still remains the most expensive place to buy a home across the UK.

Sentiment in the housing market has shown signs of improvement this year despite mortgage rates rising and the BoE continuing to hold interest rates at 5.25%.

The number of sales being agreed during the first four months of the year is 17% higher than last year, surpassing the 12% rise in the number of new sellers coming to market.

Tim Bannister, Rightmove’s director of Property Science, noted: Some predicted that property prices would suffer sharp declines and take a while to recover following the BoE raising the Base Rate up to 5.25%, where it has stayed since August 2023.

He added: However, the momentum of the Spring selling season has exerted enough upwards price pressure to touch 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.

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