House prices rise to make new record

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House prices rise to make new record Posted On 29 April 2024

The average asking price for a house has increased to £372,324, a 1.1% rise since March

The average price is now only £570 shy of its all-time high, which was set in May 2023, which is consistent with the kind of increase we often see at this time of year. The primary cause of this is a rise in the average asking price of "top-of-the-ladder" properties, which are usually the most expensive ones. These residences, which include detached four-bedroom homes and homes with five or more bedrooms, have also had the biggest price rise this year thus far in the last ten years.

There is presently greater activity at the top of the market for several reasons. Following the September 2022 mini-Budget, mortgage rates spiked, delaying the plans of some property buyers seeking for top-of-the-ladder properties. However, a lengthy time of pent-up demand in this industry is finally being released. Compared to the previous year, an additional 18% of sellers of these bigger homes have listed their properties for sale. All property classes have seen an increase in the number of agreed sales, but when compared to the same period in 2023, top-of-the-ladder residences have had the largest increase in sales, up 20%. The surge in activity has given new sellers the impression that they can seek more for their properties than they could a year ago.

The top-of-the-ladder market continues to be the primary driver of price action at the beginning of the year. Movers in this market are usually more equity-wealthy and less susceptible to rising mortgage rates. Due to salary growth and steady home prices, some purchasers in all market segments will feel that their affordability has improved from the previous year. However, others will be more negatively impacted by issues related to rising mortgage rates and the cost of living.

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