New property price record puts prices at £55,000 higher than pre-pandemic

The price of properties coming to market this month has reached yet another all-time high for the fourth consecutive month, with the average price increasing by +£7,400 (2.1%) in the last month alone, to now sit at £367,501 – over £55,000 higher than pre-pandemic prices, according to property website Rightmove’s latest House Price Index.

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The average price of properties coming to market this month has now reached a record high of £367,501, meaning prices in the UK property market have risen by a staggering £55,551 in the last two years since before the pandemic, compared to an increase of just £6,218 in the two years leading up to the pandemic. The frenetic nature of the market has caused available properties to plummet by 16% on last year and decrease by 55% compared to 2019, with demand continuing to outstrip supply. With prices increasing annually by 10.2% and the number of sales agreed currently up by 12%, the UK property market shows no signs of slowing as Rightmove witnesses an increase that has never been seen before in over 20 years of recording prices. The increase in the number of sales agreed and decrease in available properties shows that a lack of available property is what is currently dictating the pace of the market according to Rightmove, not the lack of desire from buyers in the market.

“People may be wondering why the housing market is seemingly running in the opposite direction to the wider economy at the moment. What the data is showing us right now is that … the imbalance between supply and demand is supporting rising prices. Though demand is softening from the heady levels we saw this time last year, the number of buyers enquiring is still significantly higher than during the last ‘normal’ market of 2019, while the number of homes for them to choose from remains more constrained.” Tim Bannister, Rightmove’s Director of Property Science.
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Rents are also currently rising at the fastest pace that Rightmove has ever recorded, with rental prices now an average 40% higher than ten years ago, whilst mortgage payments are only 11% higher than the previous decade.

To learn more about the UK property market and how you can capitalise on the frenetic market, get in touch with one of our property consultants today.

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