20th April 2015
Rising demand for property coupled with a dearth of supply has pushed the typical asking price to a new high according to Rightmove.
The UK’s largest property website claimed that during April the average new seller asking price increased by 1.6% or £4,381 to a new record of £286,133, surpassing the previous high set back in June 2014, by £4,351.
The property shortage experienced in many parts of the country has been exacerbated by a 2015 slump in the number of properties being put up for sale and by increased demand, with record spring search activity on Rightmove.
Miles Shipside, Rightmove director and housing market analyst said: “The high cost of housing is a big concern for many home-hunters, so the contents of the respective party manifestos and well thought-out sustainable solutions to the lack of affordable housing supply will be high on many voters’ agendas too.
“While the annual rate of price increases may be dropping back, down from 5.4% last month to 4.7% this month, it’s of little comfort to buyers as even more modest increases stretch buyers’ finances into new territory with prices at record average highs. Furthermore, the rapid fall in general inflation means that the inflation-adjusted rate of house price growth remains high.”
While the recovering housing market saw an 11% increase in new seller numbers from January to April 2014 compared to the same period in 2013, so far this year’s newly marketed property numbers have slumped and are down by 4% compared with 2014 according to the organisation.
Conversely, housing demand continues apace, with Rightmove recording its busiest ever month in March where website visits were up almost 20% year-on-year, to over 115 million.
Shipside added: “In spite of the distractions and uncertainty surrounding the upcoming election, demand for the right roof over your head seems unchecked.
“Hesitation to sell and the use of property as a long-term investment are factors in this month’s new price record, and as we approach the election the highest ever cost of housing sets an interesting challenge for political leaders.”
The challenge is greatest in the south of the country where the average price of property coming to market is up by £84,874 or 27.5% since the last election in May 2010. The high demand for homes in London and severe shortage of new supply fuel a large proportion of this increase, with a £195,420 or 49% price rise in the capital in the last five years.