Average asking price for homes at highest recorded

House sellers demand puts average asking price for homes to record height of £313,655.

According to RightMove, amounts demanded by sellers are up 2.2% year-on-year across England and Wales, with asking prices hitting a new record high of £313,655 in April, beating the previous high of £310,471 reached in June 2016.

The figures by RightMove, whose records go back to 2002, show that  the average price tag on a property being put on the market increased by £3,547 – or 1.1% month-on-month.

As a result of the squeeze on disposable incomes from rising inflation and slowing wages growth, some economists have forecast static prices this year of 2%, while others have argued that it will be closer to 5% following failure to increase the housing stock.

RightMove said that asking prices have continued to rise due to strong numbers of house sales being agreed at levels not seen before the credit crunch, with Director of RightMove, Miles Shipside, reporting signs of a “strong spring Market”, which should keep confidence in the market before the general election.

The first-time buyer sector was driving the price increases, Rightmove said, after changes to previously generous tax rules deterred buy-to-let investors from competing for similar homes.

Asking prices in this market are up by 6.5% year-on-year, with the typical price of a first-time property with a maximum of two bedrooms, now at a record high of £194,881.

Across all sectors, asking prices are up by 2.2% year-on-year across England and Wales. RightMove said the annual pace of asking price growth had generally slowed and was now at its lowest since April 2013.

Shipside said the number of sales being agreed was the highest for this time of year since 2007.

Shipside said: “Strong buyer activity this month has led to 10% higher numbers of sales agreed than in the same period in 2016. This large year-on-year disparity should be viewed cautiously as the comparable timespan in 2016 saw a drop in buy-to-let activity with the additional second home stamp duty.

When compared to two years ago, agreed sales were also up 3.8%.

“With the growth in household numbers and new-build supply struggling to keep pace, demand is strong and has led to the highest sales agreed numbers at this time of year since the heady pre-credit crunch levels.”

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