UK Property Market Sees Largest 10-Month Increase with 1.5% Rise in House Prices
The latest data from Rightmove indicates a notable surge in the UK housing market, with the average asking price reaching nearly £370,000, reflecting a significant increase of £5,279 driven by heightened buyer demand and robust sales activity during March. This surge marks the largest monthly increase in house prices in the past 10 months and comes as a positive sign for the market's recovery following a subdued performance in 2023.
According to Rightmove, the 1.5% price growth observed this month exceeds the historical March average of 1%, signaling a notable uptick in buyer interest and confidence. Despite this surge, the average asking price remains below the peak recorded in May 2023, indicating ongoing recovery efforts after the challenges faced in the previous year.
Tim Bannister, Director of Property Science Innovation at Rightmove, highlighted a 13% increase in sales agreed since the beginning of March compared to the same period last year, attributing much of the price jumps to rising demand for larger homes. However, he noted that the average time to find a buyer has extended to 71 days, the longest at this time of year since 2019, as buyers are selectively opting for attractively priced properties.
London witnessed the most significant surge in buyer demand, particularly for higher-end properties, driven by factors such as the return to office work, wage growth, and stable house prices. However, escalating mortgage rates, which have risen from 4.64% to 4.84% in the past five weeks, continue to challenge buyer affordability, adding complexity to an already unpredictable mortgage market.
Bannister emphasized the need for caution despite the positive momentum, highlighting the market's sensitivity to pricing and external factors. While sellers may feel more optimistic this year, he advised a prudent approach to negotiation given the ongoing challenges posed by stretched buyer affordability and fluctuating mortgage rates.
Source: The Guardian
