Asking prices hit record average high as housing market recovers from Brexit
Property asking prices have recovered from a Brexit blip, hitting an all-time high of £313,655 in April after rising 1.1 per cent month-to-month. Property website Rightmove found average asking prices increased £3,547 from March, surpassing the previous peak of £310,471 reached in June 2016, at the time of the EU referendum. Prices are up 2.2 per cent over the year and more houses are now being sold than at almost any point since before the financial crisis, Rightmove said.
First-time buyers have been particularly active, helping to push asking prices in this market up 6.5 per cent. Miles Shipside, director of Rightmove, said a “strong spring market”, will help to offset uncertainty resulting from the general election on 8 June. Despite this, there are signs that the market is slowing with the annual pace of price increases at its lowest level for four years.
In London and the northeast of England, prices have decreased in the last 12 months. Prices in the capital slipped 1.5 per cent, to £636,777. Wales and the east of England saw particularly strong growth, up 4 per cent and 5.3 per cent respectively. Mr Shipside said: “Strong buyer activity this month has led to 10 per cent higher numbers of sales agreed than in the same period in 2016. This large year-on-year disparity should be viewed cautiously as the comparable timespan in 2016 saw a drop in buy-to-let activity with the additional second home stamp duty."
But he said the number of sales agreed is also up 3.8 per cent compared with two years ago. Mr Shipside added: “With the growth in household numbers and new-build supply struggling to keep pace, demand is strong and has led to the highest sales agreed numbers at this time of year since the heady pre-credit crunch levels.”