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0:03 AM, 18th March 2024, About a month ago
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The average property listing price in the UK surged by 1.5% to £368,118 to mark the UK property market’s ongoing revival from a subdued 2023, data from Rightmove reveals.
The price rise is down to growing buyer interest with estate agent enquiries and robust sales figures surpassing those of last year.
Rightmove also highlights that the 1.5% rise is higher than the historical March average of 1.0%.
However, the average asking price is £4,776 shy of the May 2023 peak.
Rightmove’s director of property science, Tim Bannister, 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 underway.
“However, the stronger than usual price growth this March indicates that new sellers are feeling much more confident, with some perhaps being over-optimistic, that there is enough buyer activity and affordability in their local market to achieve a higher price.”
He added: “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.”
The uptick in buyer activity points to a return to pre-pandemic norms rather than a market surge with those buyers less affected by high mortgage interest rates leading the charge.
Agreed sales are 13% higher than the same period last year and look set to beat 2023’s one million figure.
Also, prime property is doing well with agreed sales now 18% higher than last year.
Rightmove says that London has seen the largest surge in buyer demand thanks to a return to offices by workers, wage growth and slowing inflation.
Mr Bannister said: “It’s been a positive first three months of the year for the market and better than many anticipated.
“However, we know from last year how quickly the picture can change with some negative economic news or surprises, evidenced in Rightmove’s data which captured the immediate buyer reaction to the lack of major housing initiatives in the Spring Budget.
“Sellers are right to feel more confident and optimistic this year, but buyer affordability remains stretched and higher mortgage rates are an ongoing challenge.”
He adds: “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.”
Nathan Emerson, the chief executive of Propertymark, said: “Following three years of economic turmoil, Propertymark is hopeful that 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.”
He added: “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% increase in the number of new properties available and a 129% increase in the number of market appraisals undertaken, showing there is growing appetite amongst buyers and sellers alike.”
Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “Although these are asking or aspirational prices, rather than selling prices of new listings, this data reflects some interesting market trends, which we’ve also seen on the ground.
“More listings mean buyers are often spoilt for choice, so are not rushing to take the plunge.
“Some were holding back from making offers in expectation of Budget giveaways or further mortgage rate cuts which have not really materialised.”
He adds: “On the other hand, as the market remains price sensitive, with only realistically priced property attracting attention.
“Those sellers who appreciate that if they receive enquiries in the early days of marketing, they are much more likely to find a buyer, are taking most advantage of increased demand.”
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