The average asking price of homes coming to the market in Britain increased by to a new record high of £377,182 in the last month, data shows.
The typical home saw its value increase by £5,312 or 1.4 per cent, according to Rightmove’s latest house price index.
Scotland, Wales, the majority of areas in the Midlands and most northern regions saw above average increases in demand from buyers when compared to the same point a year ago, and all saw new price records this month.
By contrast, the higher-priced South West and South East saw smaller increases in buyer demand and prices, Rightmove said.
London hit a new price record, but this could be short-lived as it is more susceptible to global uncertainties, it claimed.
Summing up the state of the housing market since stamp duty threshold changes kicked in from 1 April, Rightmove said ‘movers are carrying on and have adjusted to the tax rise.’
‘This is a larger-than-usual April price increase, despite a decade-high number of homes for sale for the time of year’, it added.
In demand: Scotland, Wales, the majority of areas in the Midlands and most northern regions saw above-average increases in demand this month, Rightmove said
The property portal claimed ‘new buyers and sellers still feel confident to enter the market’.
In a note of caution to sellers, however, Rightmove’s research revealed that homes ‘priced realistically’ from the start of marketing, rather than reduced later, were more likely to find a buyer, and in less than half the time on average.
On Trump’s tariffs, Rightmove said it was too early to say how the housing market could be affected.
However, it noted that, as a result of Trump’s tariffs, mortgage rates could potentially drop more quickly, boosting buyer affordability.
Since the stamp duty increase, the level of agreed sales falling through remained steady, according to Rightmove’s data.
Rightmove said: ‘This indicates that there has been no major pull-out from agreed deals by first-time buyers and home-movers who were unable to complete before the tax rise.
The queue of buyers waiting to complete their purchase eased by nearly 24,000 or 4 per cent, it added.
Shifting: The average asking price of homes coming to the market increased by £5,312 to a new record high of £377,182 this month, Rightmove said
Colleen Babcock, a 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.’
Alex Caddy, manager at Clarkes Estate and Letting Agency in Dorset, said: ‘We’ve seen confidence pick up in the market after a bit of a rocky March for us.
‘It appears that some would-be-movers may have been holding back to see if last month’s base rate decision and spring statement brought any good news for the housing market, but since then we have seen buyer activity and new listings pick up for the spring season.
‘The market is certainly still price-sensitive while supply remains high.’
Tomer Aboody, director of property lender MT Finance, said: ‘So far this year it has been a positive few months for the housing market with transaction levels improving, although still below pre-pandemic levels.
‘This comparatively subdued activity illustrates how big an impact higher interest rates have had on the market and sentiment.
‘All eyes are on the Bank of England to see whether there will be a further interest rate reduction in May, with any assistance here likely to boost activity now that the stamp duty concession has ended. Indeed, buyers may await further reductions before making their move.’
Nathan Emerson, chief executive of Propertymark, said: ‘All eyes are on the Bank of England to see whether there will be a further reduction in May, with any assistance here likely to boost activity now that the stamp duty concession has ended. Indeed, buyers may await further reductions before making their move.’
Earlier this month, data from Halifax indicated that average property prices fell in value by £1,575 last month as buyers factored in higher costs.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
