UK

Average home price hit record high of £375,131 in May

Rightmove

Across Britain, the price of a property coming to market increased 0.8%, or £2,807, month-on-month

The average price tag on a home hit a record high of £375,131 in May, reveals Rightmove.

Across Britain, the price of a property coming to market increased 0.8%, or £2,807, month-on-month.

Pent-up demand from would-be buyers who paused their plans last year is a key driver behind higher home mover activity despite mortgage rates remaining higher for longer than expected, Rightmove said.

The number of sales being agreed during the first four months of the year is 17% higher than last year.

May is typically a strong month for price growth, with new price records having been set in May in 12 of the previous 22 years, it added.

Since the last price record set a year ago in May 2023, average prices are just 0.6% higher overall, a reminder that the market remains very price-sensitive, the report said.

In some positive signs for the mortgage market, HSBC UK, Barclays and TSB reduced their mortgage rates last Friday.

Tim Bannister, Rightmove’s director of property science, noted: The momentum of the spring selling season has exerted enough upwards price pressure to hit a new record asking price.

Rightmove expects the number of completed house sales this year to touch almost 1.1 million, but it said the lengthy time to complete a sale after finding a buyer remains a challenge for both agents and movers.

The average time between agreeing a sale and legal completion is five months. In total, it is taking more than seven months on average from a seller coming to market to completing their move, meaning would-be sellers hoping to celebrate Christmas in a new home need to be coming to the market about now, Rightmove added.

The findings were released as property firm Hamptons said tenants renewing an existing contract in Britain typically saw their rent increase by an average of 8.3% over the 12 months to April, outpacing rental growth on a newly-let property (6.4%).

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