Rightmove has reported that the average price of property coming to market has hit a new record for the fourth consecutive month, rising to £367,501.
This month’s increase of 2.1% (+£7,400) is the highest at this time of year since May 2014, and marks a national jump of £55,551 in asking prices in the two years since the housing market shut due to the pandemic. This compares to a rise of just £6,218 in asking prices in the two years before the pandemic.
This fourth consecutive price record comes alongside a fourth successive interest rate rise, but Rightmove notes that this rate rise and other household economic concerns do not appear to have dented the motivation and urgency to move that are felt by many, though there are signs that the market is starting to ease.
The number of buyers contacting estate agents is 14% down on the “stamp-duty-fuelled market” of this time last year, but is up by 31% on the more comparable market of 2019. The number of properties available to buy is 55% down on the levels seen in 2019, meaning that supply and demand look likely to remain out of kilter for at least the rest of the year, Rightmove said.
The number of sales agreed is up by 12% in the year to date compared to 2019 even with restricted choice, though is down 17% compared to the exceptional market of the same period last year.
Tim Bannister, Rightmove’s director of property science, said: “People may be wondering why the housing market is seemingly running in the opposite direction to the wider economy at the moment. What the data is showing us right now is that those who have the ability to do so are prioritising their home and moving, and the imbalance between supply and demand is supporting rising prices.
“Though demand is softening from the heady levels we saw this time last year, the number of buyers enquiring is still significantly higher than during the last ‘normal’ market of 2019, while the number of homes for them to choose from remains more constrained. We anticipate that the effects of the increased cost of living and rising interest rates will filter through to the market later in the year, and a combination of more supply of homes and people weighing up what they can afford will help to moderate the market.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Even the Rightmove survey, in common with other recent housing indices, is telling us the housing market is coming off the boil despite the average asking price of newly-listed properties reaching record territory for the fifth consecutive month.
“Rightmove’s findings have been defying reason for several months but finally affordability issues, prompted by the rising cost of living and particularly energy and interest rates, are having an impact.
“Hopefully, the change in circumstances will mean vendors set more realistic asking prices so that the level of transactions, which are important for the health of the market, can keep up as closely as possible with last year’s.”