The average house price in the UK has risen to a new record high of £377,182, according to Rightmove’s latest House Price Index.
The new average price for April represents a 1.4% increase on the previous month, growing by £5,312. Rightmove says that, despite a decade-high number of homes for sale for the time of year, this is a larger-than-average April price. The figure also rose 1.3% year-on-year.
The data also suggests that buyers are adjusting to the Stamp Duty increase, with the level of sales falling through remaining steady and the majority of buyers who missed the deadline still proceeding with their purchases.
Rightmove also that mover activity remains resilient with new buyer demand increasing by 5% year-on-year and the number of new sellers coming to the market also increasing by 4%.
On a regional level, each part of the country saw growth, although some saw stronger growth than others. The South West saw the largest monthly increase at 3.1% while the North East only improved by 0.3%.
London recorded a monthly increase of 0.5% and 0.4% year-on-year, with average prices now standing at £699,200. While a new record high, Rightmove suggests that the increase may be short-lived with global uncertainties set to take their toll.
Colleen Babcock, property expert at Rightmove, said: “We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade-high. The increased choice seems to be bringing more movers into the market, with both buyer and seller numbers up as the market remains resilient. Confidence from new sellers is a good sign for the overall health of the market, but they do need to be careful when setting their asking price. The high level of supply in the market right now means that buyers are likely to have plenty of homes in their area to choose from, and an overpriced home will stick out for the wrong reasons. Our research also shows that getting the price right the first time is key. Homes that don’t need a reduction in price are more likely to find a buyer, and to find that buyer in less than half the time.”
“It’s important to remember that among records and national trends, Great Britain’s housing market is made up of thousands of diverse local markets, each uniquely responding to market changes and world events. London, for example, is likely to see greater knock-on effects from US tariffs than the rest of Great Britain, while Northern regions appear to be performing more strongly post-stamp duty rise. It’s difficult to predict what the next few months will bring, but if mortgage rates reduce more quickly, it would be a helpful boost to buyer affordability.”
