The average price of property in the UK rose again last month, hitting a record high of £313,655, according to a new house price index.
The latest Rightmove House Price Index reveals that the average price of property coming on to the market grew by 1.1% in April, in comparison to the month before. The average UK property price of £313,655 therefore now exceeds June 2016’s high of £310,471.
Rightmove says that the rise in prices has been driven by strong buyer demand with the highest number of sales agreed since 2007, before the credit crunch.
“High buyer demand in most parts of the country has helped to propel the price of newly marketed property to record highs,” said Rightmove director Miles Shipside.
“There are signs of a strong spring market with the number of sales agreed achieved at this time of year being the highest since 2007. It remains to be seen what effect the run-up to the snap election will have, though any slowdown in activity will be counter-balanced by the market’s current fast pace.
“Indeed, in locations where choice of suitable property is limited hesitation could mean losing out to others who still decide to act.”
With the exception of London, prices rose on a monthly basis in every region across the country. In London, a month-on-month fall of 2% put the average price at £636,777.
The greatest increase in prices was found in Wales, where the price of an average house is now £186,172, up 7.6% on a monthly basis.
Despite April’s record highs, the 1.1% monthly rise in prices was below the 1.6% average increase seen for the past seven years at this time and at 2.2%, the annual rise in prices was the slowest for four years.
Russell Quirk, EMoov.co.uk founder and chief executive 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.”
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