UK house prices: Asking prices see huge monthly jump - but fresh warning issued
By Jack Walters
Published: 22/05/2023- 17:52
The property market is showing signs of a post-pandemic recovery as asking prices bounce back.
The online property listing company Rightmove suggested there had been an increase in confidence among both buyers and sellers.
Rightmove highlighted how average asking prices for newly-listed homes surged by 1.8 per cent in May.
The increase brings the average figure to £372,894.
Rightmove highlighted how average asking prices for newly-listed homes surged by 1.8 per cent in MayPA
However, Rightmove stressed buyers also seemed more optimistic about the situation.
Buyer demand grew by three per cent compared to the same period in 2019.
The change comes as the mortgage market stabilises following a rapid rate increase at the end of last year.
Tim Bannister, Rightmove's director of property science, said: "This month's strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we'd usually see such a big monthly increase earlier in the spring season.
Despite a bounce back, the property market remains “very price sensitive”PA
“One reason for this increased confidence may be that the gloomy start-of-the-year predictions for the market are looking increasingly unlikely.
“What is much more likely is that the market will continue to transition to a more normal activity level this year following the exceptional market activity of the pandemic years.”
However, the property expert warned the market remains “very price sensitive”.
He added: “The market is still very price-sensitive and it is important that new sellers do not damage their prospects of a sale by overpricing initially and reducing later, with agents reporting that it’s the realistically-priced new instructions that are selling best.”
Regional trends suggest monthly increases between one and three per cent in London, the South East, Yorkshire & Humberside, the South West, North West and West MidlandsPA
The most significant change appears to come in so-called top of the ladder properties.
Rightmove highlighted how top of the ladder properties experienced a 2.8 per cent monthly change.
Second-stepper homes witnessed a monthly change of 0.7 per cent and first-time buyers saw a more modest growth of 0.6 per cent.
Regional trends suggest monthly increases between one and three per cent in London, the South East, Yorkshire & Humberside, the South West, North West and West Midlands.
Wales, the East Midlands and East of England experienced smaller monthly increases but the North East witnessed a 2.3 per cent monthly drop.