Average house jumps £5,000 in a single month

SELLERS received some good news this month after the average price of a newly marketed home rose more than £5,200.

Month-on-month figures released by Rightmove show a 1.5% increase since February, pushing the average asking price up to £368,118.

But that’s still £4,776 below May 2023 when the market saw a peak.

The biggest monthly rises were in the East Midlands and the South West, with rises of 2.7% and 2.4%, respectively.

Expensive

But increases in London, Wales and Scotland were below 1%.

The number of sales agreed is 13% higher than at this time last year.

Scotland and the North East are the cheapest places to live, with average house prices below £200,000.

Properties in London have fallen by 0.9% but it remains easily the most expensive place to buy, with homes averaging £686,844.

Tim Bannister, Rightmove’s director of property science, said: “Sellers are right to feel more confident and optimistic this year, 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, rents are still going through the roof. Renters in the capital are paying 5.1% more – £2,121 a month on average – compared with the North East – £695.

Demand for properties is down 20% year-on-year and there are now a fifth more homes available for rent than there were 12 months ago.

But hopeful tenants continue to face a challenge finding accommodation with supply still below the prepandemic average.

That mixed with rising mortgage rates could see rent affordability remain high over the rest of the year, says Zoopla.