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Average house price hit new high of £375,131 in May
The average house price hit a record £375,131 in May, according to Rightmove.
Across Britain, the price of a property coming onto the market rose by 0.8%, or £2,807, month on month.
Pent-up demand from would-be buyers who put their plans on hold last year is a key factor behind the rise in home moving activity, despite mortgage rates remaining elevated for longer than anticipated, Rightmove said.
The number of sales agreed in 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 set in May in 12 of the previous 22 years, the report said.
Since the last price record was set a year ago in May 2023, average prices are just 0.6% higher overall, a reminder that the market remains very price sensitive, he added.
In some positive signs for the mortgage market, HSBC UK, Barclays and TSB cut their mortgage rates last Friday.
Rightmove map shows changes in average asking prices across Britain (Rightmove/PA)
Tim Bannister, director of property science at Rightmove, said: “The momentum of the spring selling season has put enough upward pressure on prices to reach a new record asking price.”
Rightmove expects the number of house sales completed this year to reach around 1.1 million, but said the long time to complete a sale after finding a buyer remains a challenge for both agents and conveyancers .
The average time between the sales agreement and legal conclusion is five months. In total, it takes more than seven months on average from the time a seller hits the market to completing their move, meaning potential sellers looking to celebrate Christmas in a new home need to hit the market right now, said the site.
The findings came as property firm Hamptons said tenants renewing an existing lease in Britain typically saw their rents rise by an average of 8.3% in the 12 months to April, outpacing rent growth in a newly let property (6.4%).
Aneisha Beveridge, head of research at Hamptons, said: “Over the last two years, strong growth in open market rents has meant the gap between market rates and what some tenants were paying has widened significantly.
“The large difference between market rates and what many tenants are paying is a huge disincentive for them to move unless necessary. Moving more and more means getting less house for more money.
“While time will eventually close the gap between what tenants and new tenants are paying, it could take longer if open market rent growth starts to rise again.”