UK Housing Market Witnesses Spring Revival with Continued Price Increases

The UK housing market is experiencing a robust spring revival, with the average asking price for properties rising by 1.1% this month. This increase brings the average price to ￡372,324, a figure just shy of the May 2023 record, according to the latest Rightmove data.

Significant growth has been noted in the largest homes, specifically in the top-of-the-ladder sector, which has seen the strongest start to the year for price growth since 2014. The annual rate of price growth in this sector now stands at 1.7%, marking the highest level in the past 12 months.

Despite these gains, the market exhibits sensitivity to price variations and operates at differing speeds across sectors. The first-time buyer and second-stepper sectors are witnessing more gradual increases in prices and activity, heavily influenced by mortgage dependencies.

The influx of new sellers is also contributing to market dynamics, showing a 12% increase compared to the previous year. Sales agreements are similarly up by 13%, indicating a rebound in both seller and buyer activity from a quieter Spring in 2023. Notably, the top-of-the-ladder sector leads this surge, with an 18% rise in new sellers and a 20% increase in sales agreements.

Rightmove highlights a particular peak in activity on Thursday, March 28, marking it as the day with the highest number of new sellers entering the market so far in 2024 and the third largest since August 2020.

With a busy summer ahead, featuring major sporting events and an anticipated general election, potential home-movers have a window of opportunity to act amidst these distractions.