Rightmove’s House Price Index for April 2024 saw the average asking price for new-to-market properties increase by 1.1% to £372,324.
This rise puts the average asking price just £570 below the record set in May 2023, and the annual rate of price growth is now 1.7%, the highest in 12 months.
The report points to the largest homes in the top-of-the-ladder sector as the main contributors to the near-record average price, with these properties experiencing the strongest start to the year since 2014 in terms of price growth.
However, price sensitivity persists in the market, particularly within the segments most dependent on mortgages, like the first-time buyers and second-stepper sectors, where price and activity are climbing at a slower pace.
A notable 12% increase in new sellers and a 13% rise in sales being agreed upon compared to last year suggests a recovery from the previous Spring’s lacklustre performance.
The largest homes sector is seeing the most substantial activity increases, with an 18% rise in new sellers and a 20% increase in sales agreed upon.
The 28th of March marked a significant peak in activity, with the highest number of new sellers entering the market in one day for 2024 and the third highest since August 2020.
This surge suggests a window of opportunity for those considering a move, especially with the distraction of a busy summer sports calendar and the likelihood of a General Election.
Marc von Grundherr, director at Benham and Reeves, comments on the current market dynamics: “Spring has sprung in housing market terms with growing buyer demand pushing sellers to increase asking prices to near record levels.
“As the rate of inflation slows and market uncertainty subsides, the property market is responding, as it always does, with upward price movements.
“What’s more, wage growth is now outstripping both consumer inflation and house price growth, ensuring that for the first time in years, house price affordability is actually improving.”
Further reaction
Tomer Aboody, director of property lender MT Finance:
“With a pick up in sales providing further confidence in the market, we are seeing the fruits of a stable interest rate environment, combined with reduced inflation, all contributing to an increase in asking prices.
“With the announcement that the government may be looking to introduce another stamp duty restructure in the autumn ahead of the general election, this will provide a further boost for the housing market, saving buyers thousands of pounds.”
Tanya Elmaz, director of intermediary relations:
“The housing market appears to have a spring in its step with house prices rising for another month. This, along with lower inflation and some falling mortgage rates, all contributes to stronger levels of optimism in the market. The latest data from The Bank of England also shows mortgage approvals reached a 17-month high, showing the steady but ongoing recovery seen in the housing market since last summer.
“That said, affordability is still an issue. While sellers will be welcoming the boost of activity, some first-time buyers may still be feeling the squeeze on deposits. We found a fifth (20%) of millennial first time buyers are still relying on their baby boomer parents to supply first home deposits to get a foothold on the ladder.
“For this cohort, looking at alternative purchase options, including auctions where properties may be greatly discounted, is always worth consideration. There are also many supportive schemes like shared ownership and right-to-buy which can help first time buyers get on the property ladder.”
Ruth Beeton, co-founder of Home Sale Pack:
“As buyer demand continues to climb so too has the asking price expectations of the nation’s sellers. However, the real positive to take is that, at 64 days on average, homes are selling at their fastest since November, indicating just how much buyer appetites have improved.
“In fact, the average home is selling 18% faster than in January alone and that is the factor to watch here as faster sales mean even higher prices in the coming months. However, the downside is it also means an increased chance of fall throughs as the industry struggles to cope with the increasing strain placed on the archaic conveyancing process, in particular.”
Jason Harris-Cohen, CEO of Open Property Group:
“Optimism reigns as sellers shrug off any hint of election jitters, throwing caution to the wind with almost record levels of enthusiasm’.
“It’s interesting to see that the highest end of the UK property market is responding most aggressively in this month’s house price numbers, with the biggest upwards push in asking prices in ten years.
“For those at the higher rungs of the proper ladder, it’s seemingly never been a better time to sell. Of course, the challenge will be their ability to secure a buyer as such strong price growth means that this level of the housing market just got that little bit more unobtainable for those looking to reach it.”
