Average house price jumps by more than £5k in March
THE average asking price for a newly marketed home has jumped by more than £5,000 this month in comparison with February, according to top property website Rightmove.
It said it was an indication that “we now seem to be past the bottom of the market”. The typical price tag on a home across Britain increased by 1.5% or £5,279, with the rise pushing the average asking price to £368,118.
Rightmove said the month-onmonth rise was higher than the usual 1.0% average seen in March. However, the average asking price is still £4,776 below a peak seen in May 2023.
The website said agreed sales and buyer demand were higher than this time last year, but the market remains sensitive to pricing.
It stressed that attractively priced properties were quickly being picked but over-optimistically priced homes are taking longer to find a buyer.
Tim Bannister, of Rightmove, said: “March is typically a strong month for asking price growth as both buyer and seller activity levels rise and the spring selling season gets under way.
“However, this stronger-than-usual price growth indicates that new sellers are feeling much more confident, with some perhaps being over-optimistic that there is enough buyer activity and affordability in their local market to achieve a higher price. For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market.”
Rightmove said the average time to find a buyer is 71 days – the longest at this time of year since 2019.
Mr Bannister added: “Sellers are right to feel more confident but buyer affordability remains stretched and higher mortgage rates are an ongoing challenge.
“With the market still sensitive to pricing and external events, some caution and willingness to negotiate is advised for sellers who are keen to find a buyer in the spring market.”
Meanwhile, a lettings index from property firm Hamptons indicated that growth in rental prices cooled last month. The average rent on a newly let home rose by 7.1% annually, slowing from 8.3% in January and a peak of 12% last August.
Rental growth is still running faster than inflation and the average tenant moving into a new property would pay an extra £87 per month or £1,044 a year more in rent than if they moved in February last year, Hamptons added.
The average monthly rent on a newly let property this February was £1,317.