The average asking price for a house in the UK has risen by a further £5,279 to almost £370,000, as increased buyer demand and strong house sales in March combined to boost the market’s recovery after a “low 2023”. .
According to Rightmove, the UK’s largest property website, this month’s 1.5% price rise was significantly higher than the 1% average for the past March, and was the largest monthly rise in 10 months.
Rightmove said real estate agents are reporting a significant increase in buyer demand this month as more people are “seizing the buying opportunity”.
The website says the average asking price in the UK has now risen significantly to £368,118, but remains below its May 2023 peak as the market continues to recover after a “low 2023”. 4,776 pounds below.
Halifax announced last week that the UK’s average house price has fallen by just £1,800 from the peak recorded in June 2022.
Tim Bannister, director of real estate science and innovation at Rightmove, said the number of sales agreed since the beginning of March was up 13% on the same period last year, with demand for larger homes driving most of the price jump. He said that it seems that .
He said the average time to find a buyer is now 71 days, the longest period of time since 2019. Brokers report that while buyers are quickly picking out attractively priced properties, higher-priced properties are taking longer, pushing up average turnaround times. sell.
London has seen the biggest increase in buyer demand compared to this time last year, both overall and for top-tier properties. A return to offices, rising wages, stable house prices and slowing inflation are all helping to increase buyer interest in living in the capital again, it said.
Mortgage rates have been creeping up for several weeks, but the average five-year mortgage rate is now 4.84%, up from 4.64% five weeks ago, according to Rightmove, a trend that continues to drive buyers away. He said they tend to try affordable prices.
After a chaotic 2023, the mortgage market will become even more unpredictable, with interest rates rising one week and falling the next as lenders change pricing based on the latest economic indicators. A situation arose.
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“The first three months of the year have been strong for the market, exceeding most expectations,” Bannister said. “But we know from last year how quickly things can change.
“While it’s understandable that sellers will be more confident and optimistic this year, affordability for buyers remains limited and rising mortgage rates are an ongoing challenge,” he said. “The market remains sensitive to pricing and external events, so a degree of vigilance and willingness to negotiate is required.”
