Chat with us, powered by LiveChat Average UK House Prices Reach Record High in May
22nd May 2024
5 minutes

Average UK House Prices Reach Record High in May

The average price of a property coming to market in May has increased by +0.8% (£2,807) to reach a new record of £375,131 according to the latest House Price Index released by property website Rightmove, as the momentum of the heightened Spring selling season puts upward pressure on pricing.

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UK house prices hit new all-time record in May

According to the latest House Price Index released by property website Rightmove, the average UK house price has hit a new record this month reaching £375,131 – an increase of £2,807 (+0.8%) in April as the momentum of the Spring market continues to put a pressure on pricing.

Traditionally a strong month for house price growth, new average house price records have fallen in May for 12 of the last 22 years with a new price record hit in May of last year. However, year on year prices have increased by just 0.6%, reflecting the sensitivity of the pricing within the UK property market that continues as the cost-of-living crisis, high mortgage rates, and record levels of inflation continue to impact the housing market.

“Some predicted that property prices would suffer sharp falls and take a while to recover following the Bank of England increasing the Base Rate up to 5.25%, where it has remained since August 2023. However, the momentum of the Spring selling season has exerted enough upwards price pressure to reach a new record asking price.”
Tim Bannister, Director of Property Science at Rightmove.

Pent-up demand drives activity in the UK property market

Despite mortgage rates remaining higher than anticipated for this time of year, the key driver behind the increased buyer and seller activity within the UK property market is reportedly pent-up demand according to Rightmove, with the number of sales being agreed over the first four month of the year reaching 17% higher than the same period last year and outstripping the 12% increase in the number of new sellers that have come to market.

Now that the mortgage market has stabilised, many buyers who had initially postponed their plans to purchase after the mini-Budget delivered by Kwarteng in 2022 are now returning to the market in search of property.

Property purchases taking an average of five months to complete

The number of completed sales transactions for 2024 is now estimated by Rightmove to reach 1.1 million with their key lead indicators suggesting positive progress to reaching this number of transactions thanks to the UK’s largest selection of real-time data obtained through their website.

However, the time taken to complete a sale after finding a buyer is remaining a challenge for both agents and buyers in the market, with the average time between agreeing a sale and official legal completion reaching a total of five months (154 days). In some cases, the time has stretched to seven months, meaning if buyers hope to own their property before the new year, they may have to get in now.

"We expect that the improved market activity levels and conditions this year will result in higher transaction numbers at the end of 2024 than last year. However, the extremely lengthy legal completion process is a frustrating barrier to home-movers converting agreed sales into completed transactions more quickly.”
Tim Bannister, Director of Property Science at Rightmove.

To speak to one of our expert team about our available properties and learn more about the current state of the UK property market, get in touch today.

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