March witnessed a rise in average asking prices of 1.5%, marking the most substantial increase in the last 10 months and signalling a growing confidence in the UK housing market, according to Rightmove. This rise outperforms February’s 0.9% increase and exceeds the usual March average growth of 1.0%.
The average asking price now stands at £368,118, with year-on-year prices up by 0.8%. Sales agreed in the same period have seen a 13% increase, with buyer demand up by 8%, notably in the larger homes category and within London.
Tim Bannister, Rightmove’s director of property science, said: “March is typically a strong month for asking price growth…However, the stronger-than-usual price growth this March indicates that new sellers are feeling much more confident.”
James Briggs from Together highlights, “With affordability concerns seeming to ease, buyers could be in a position to snap up bargains…The ambition for homeownership is far from dwindling.”
The recent budget announcement, reducing the higher rate of capital gains tax, is expected to encourage sales from rental investors, potentially increasing the availability of family homes for first-time buyers.
Nathan Emerson, CEO of Propertymark, added: “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.
“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.”
