Property Industry Reacts To Rightmove House Price Index

The average asking price of property coming to the market has hit a near record-high this month, the latest figures from Rightmove show, but the market remains price-sensitive.

There are more sellers coming to the market and this has resulted in a hike in the number of sales being agreed; good news for estate agents.

UK housing market continues spring revival as asking prices rise again – Property Industry Eye

Industry reactions:

Tom Bill, head of UK residential research at Knight Frank, said: “Buyers and sellers have faced mixed messages in 2024 as interest rate predictions have fluctuated. While rising asking prices show seller expectations have improved, there is broader downwards pressure on prices as mortgage rates edge higher, supply increases and a wave of people roll off sub-2% fixed-rate mortgages agreed in early 2022.

“The result is more friction around prices, particularly when a rate cut seems to move further into the distance with every release of economic data. That said, higher supply means there should be a recognisable spring bounce in the housing market.”

Nathan Emerson, CEO of Propertymark, stated: “With many buyers and sellers keen to start buying their next dream home during a brighter period of the year, they can do so knowing that their homes are increasing in value yet again, and this is despite the fact that interest rates remain the same in order to stabilise the economy following surging inflation.

“People are demonstrating a pragmatic attitude towards current market conditions and our own Housing Insight Reports are a key indication of how positive the market is starting to look, with an 18 per cent increase in new properties coming to the market. Approvals for remortgaging also increased, from 30,900 to 37,700 since February, according to the Bank of England’s Money and Credit report. Therefore, if you want to buy your next house, now is the best time to do so.”

Marc von Grundherr, director of Benham and Reeves, commented: “Spring has sprung in housing market terms with growing buyer demand pushing sellers to increase asking prices to near record levels.

“As the rate of inflation slows and market uncertainty subsides, the property market is responding, as it always does, with upward price movements.

“What’s more, wage growth is now outstripping both consumer inflation and house price growth, ensuring that for the first time in years, house price affordability is actually improving.”

Ruth Beeton, co-founder of Home Sale Pack, said: “As buyer demand continues to climb so too has the asking price expectations of the nation’s sellers. However, the real positive to take is that, at 64 days on average, homes are selling at their fastest since November, indicating just how much buyer appetites have improved.

“In fact, the average home is selling 18% faster than in January alone and that is the factor to watch here as faster sales mean even higher prices in the coming months. However, the downside is it also means an increased chance of fall throughs as the industry struggles to cope with the increasing strain placed on the archaic conveyancing process, in particular.”

Jason Harris-Cohen, CEO of Open Property Group, remarked: “’Optimism reigns as sellers shrug off any hint of election jitters, throwing caution to the wind with almost record levels of enthusiasm’.

“It’s interesting to see that the highest end of the UK property market is responding most aggressively in this month’s house price numbers, with the biggest upwards push in asking prices in ten years.

“For those at the higher rungs of the proper ladder, it’s seemingly never been a better time to sell. Of course, the challenge will be their ability to secure a buyer as such strong price growth means that this level of the housing market just got that little bit more unobtainable for those looking to reach it.”

Matt Thompson, head of sales at Chestertons, added: “The uplift in market activity typically associated with spring was slightly delayed this year but is now starting to come through. Compared to last month, we have seen a clear increase in the number of house hunters. This has also led to sellers feeling more confident that now is the right time to put their property up for sale.

“Although the number of buyers and sellers has seen an increase in April so far, demand still outweighs supply which gives sellers the upper hand during price negotiations. Current speculation that interest rates might be cut over the coming months could see an additional increase in buyers which could result in sellers persisting on or increasing their asking prices.”

UK housing market continues spring revival as asking prices rise again

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