Record house prices up £7,400 in single month, Rightmove says
The property website said the average asking price for a home is now £367,501, up from £360,101 in April.
Frenzied market activity has led to price increases over the past two years at levels Rightmove has never seen in its 20 years of tracking property values.
Average asking prices have soared by £55,551 in the past two years, compared with a £6,218 increase in the two years before the pandemic, it added.
The number of buyers contacting estate agents is down 14 per cent on the stamp duty holiday-fuelled market of this time last year.
But it is still up by 31 per cent compared with the “normal” pre-Covid market of 2019.
The amount of properties available to buy is 55 per cent down on levels seen in 2019, meaning supply and demand look likely to remain out of kilter for at least the rest of 2022.
The number of sales agreed is up by 12 per cent in the year to date compared to 2019, says Rightmove.
Director of property science Tim Bannister said: “Though demand is softening from the heady levels we saw this time last year, the number of buyers inquiring is still significantly higher than during the last ‘normal’ market of 2019. Meanwhile, the number of homes for them to choose from remains more constrained.
“We anticipate that the effects of the increased cost of living and rising interest rates will filter through to the market later in the year. A combination of [a greater] supply of homes and people weighing up what they can afford will help to moderate the market.”
Estate agent Aled Ellis in Aberystwyth, Mid Wales, said: “There’s very little coming on the market. When it does we agree a sale very quickly.”