The average price of a newly marketed home jumped by more than £5,000 month-on-month in March, in signs that “we now seem to be past the bottom of the market,” according to a property website.
House sellers lifted their asking prices by the largest amount in 10 months in March, new data from Rightmove shows, as buyer demand increased in the busier spring selling season.
Across the UK, typical home prices have grown 1.5 per cent or £5,279, Rightmove said. The average asking price is now £368,118. Rightmove said average prices remain £4,776 below last May’s peak.
With buyer demand up 8 per cent compared to the same period last year, the property website said it was a sign “we now seem to be past the bottom of the market”. Other house price surveys have also seen evidence of a market revival.
Tim Bannister, Rightmove’s director of property science, said: “March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets under way.
“However, the stronger-than-usual price growth this March indicates that new sellers are feeling much more confident, with some perhaps being overoptimistic, that there is enough buyer activity and affordability in their local market to achieve a higher price.
“Despite the above-average price increases in this opening three months of the year, asking prices are still £4,776 below their peak in May 2023. For those who can afford to buy and have yet to take action to move this year, this may provide a window of opportunity to buy as we now seem to be past the bottom of the market.
“While some sellers are still being over-optimistic with their pricing expectations, there are also more sellers who are aware of the need to be negotiable and realistic, with elevated interest rates compared to recent years still stretching affordability for many buyers.”
The East Midlands had one of the biggest jumps monthly in asking prices – up 2.7 per cent. The average property price stands at £247,054 in the region. The South West of England follows with a 2.4 per cent monthly rise, taking the average asking price to £383,889.
The average time to find a buyer is now 71 days, which is the longest at this time of year since 2019, the website 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,” Tim Bannister added.
The Rightmove figures come as a report warned that mortgage deals are often on offer for just 15 days before being pulled from the market, despite homeowners and buyers having the widest choice for 16 years.
This is the shortest shelf-life in six months, according to financial information service Moneyfacts.
Nathan Emerson, of estate agents group Propertymark, said: “Following three years of economic turmoil, Propertymark is hopeful we are now witnessing a positive trend towards increased prosperity in the housing market. For months, people have taken a hit on their property prices in order to find an affordable middle ground to enable a home move.
“Now that balance is being better struck and with interest rates remaining stable, we are seeing signs of normality and strong overall indicators now is an attractive time to buy or sell property.
“Our member agents have reported an 80 per cent increase in the number of new properties available and a 129 per cent increase in the number of market appraisals undertaken, showing there is growing appetite amongst buyers and sellers alike.”
The figures were released as a lettings index from property firm Hamptons indicated that growth in rental prices cooled in February.
Last month, the average rent on a newly-let home in Britain rose by 7.1 per cent annually, slowing from 8.3 per cent in January and a peak of 12.0 per cent in August 2023.