A survey of asking prices for homes in the UK has shown a rise in May for a fifth month in a row – a marked contrast from recent industry reports suggesting the market was stagnating.

A new record for the average selling price

The property website Rightmove found prices across the country were 1.2 per cent higher than in April with the average home now selling for an average price of £317,281, a new record.However, the survey found the volume of sales in the year to date is two per cent down on last year, though the 2016 figure was boosted by a rush in the buy-to-let market before the imposition of additional stamp duty on such properties.The Rightmove research appears to run counter to recent reports from the Office for National Statistics and the Halifax, which recorded a fall in prices in the three months to April.

Family homes responsible for the rise

Rightmove found that family homes were primarily responsible for the price rise. Home-owners with children aged under 11 were found to be twice as likely as others to move home. The number of 'second-stepper' families looking for larger homes with three or four bedrooms than their first properties, increased by 5.4 per cent over the last year to reach £270,953.Miles Shipside, Rightmove director, said, “Whilst all-time high asking prices or economic and political uncertainty could be deterrents to would-be home buyers, this month shows another strong set of figures.“Demand is exceeding supply in many parts of the country and continues to push up the prices of newly-marketed homes. Spring is in the air and home movers are springing up the housing ladder.“What seems to be happening is that moving pressures are understandably taking priority over electioneering and Brexit worries. For many in this group, it seems that moving is definitely on their manifesto.”

Largest annual increase was in the West Midlands

Looking at annual asking price rises across the nation, the survey found that Wales saw the smallest increase of just 0.7 per cent, bringing the average to £182,769, followed by London, where a 0.9 per cent rise brought the average asking price to £649,864.The largest annual increase was seen in the West Midlands (5.9 per cent, bringing the average to £218,620) followed by the East Midlands and the East of England, where both saw rises of 4.4 per cent.Russell Quirk, chief executive of online estate agent eMoov.co.uk, said, “Interesting that Rightmove should have observed no wobble in the market where asking prices are concerned, despite the industry indices based on sale completions stating otherwise.“This would suggest that UK buyers are still sitting tight despite a marginal cool in market demand and are yet to reduce their price expectations. Overall, the predominant air of confidence seen in the market over the last year from UK home sellers seems to be persisting and this, in turn, should see price growth stabilise.”

---

Related news:

• UK house market stalls as London prices level off
• Renting now cheaper than buying in most UK cities
• Surveyors expect housing market to remain flat over summer

---

Nick Leeming, chairman of SE England estate agents Jackson-Stops and Staff, added, “Our branches in the home counties across Surrey and Kent are seeing particularly strong interest from second steppers.“These are typically young families who bought their first home in London around four to five years ago. Some will have taken advantage of the Help to Buy incentive, and nearly all would have benefited from a significant equity increase in their home.”Jeremy Duncombe, director of Legal & General Mortgage Club, commented, “A fairer and more equal Britain has been a key manifesto promise from every political party. Restructuring our housing market will help make these sentiments a reality.“The current imbalance between supply and demand is creating an exclusive home ownership club for those who are financially secure, whether it be via the Bank of Mum and Dad or through individual savings.“Our housing market needs to be able to accommodate everyone and this will only be achievable if we tackle the root of the problem: supply. Unsustainable house price rises will only be tempered by building more homes across a variety of tenures, over the whole of the UK.”For related news and features, visit our Residential Property section.Access hundreds of global services and suppliers in our Online Directory  Get access to our free Global Mobility Toolkit

©2024 Re:locate magazine, published by Profile Locations, Spray Hill, Hastings Road, Lamberhurst, Kent TN3 8JB. All rights reserved. This publication (or any part thereof) may not be reproduced in any form without the prior written permission of Profile Locations. Profile Locations accepts no liability for the accuracy of the contents or any opinions expressed herein.