The cost of the average property rose by 1.8% during May to £333,564, according to Rightmove’s House Price Index
The recent rise in house prices across the UK has continued its trajectory, as the market set a new record for May.
Rightmove’s House Price Index has revealed that the cost of the average property rose by 1.8% during May to £333,564.
The biggest increases came from the north-west, Yorkshire and Wales, which each saw the price of homes jump by over 10%.
Notably, prices in the capital were more subdued, with a 0.2% increase in prices in London.
In line with Rightmove’s latest House Price Index, Sundeep Patel, Director of Sales at specialist lender Together, commented: The continued rush to buy property in today’s market is undeniable. With house prices increasing by 1.8% in May, to £333,564 (up from £327,797 in April), it’s clear sellers are very optimistic about the months ahead, as the race is still on to make the most of the Stamp Duty holiday extension.
That said, while the Stamp Duty holiday has certainly stimulated the rush of activity we’ve been seeing recently, there will still be a large proportion of the market who continue to be underserved when approaching highstreet lenders. It’s here where specialist lenders are invaluable when supporting home-buyers’ property plans, he said.
It’s tricky to predict what the market will look like post-pandemic, so while the economy continues to recover, we’re anticipating flexibility will be crucial for borrowers and their evolving needs from the latter half of this year onwards, Patel said.
Tim Bannister, Rightmove’s director of property data comments: Last year’s unexpected mini-boom is rolling on into 2021, with new price and market activity records again defying many predictions.
He said buyer affordability is increasingly stretched, but there’s obviously some elasticity left to stretch a bit more as many buyers are squeezing their way into higher price bands. This high demand, with both willingness and ability to pay more, has pushed the average price of property coming to market to a new all-time high of a third of a million pounds.