Rightmove has reported that the cost of an average home in the UK has surpassed £350,000 for the first time.
The property marketing website reported that sellers were asking for an average of £354,564 for a property in March – 1.7% or £5,760 more than in February - the highest monthly increase seen at this time of year since March 2004.
Rightmove said asking prices were generally 10.4% higher than a year ago – the highest figure it has recorded in any month since June 2014.
The average price of a “top of the property ladder” home with at least four bedrooms increased by 3.8% or £23,619 this month, reaching £647,112.
Director of Estate Agency at Bradley Hall, Matt Hoy, said: “Asking prices are being fuelled by an imbalance between buyer demand and the number of properties available for sale, making it a strong spring sellers’ market.
“It has recently been revealed that there are now more than double the amount of buyers than sellers active in the market, which it said is the biggest mismatch between supply and demand that it has ever recorded at this time of year.
“We are seeing many properties moving quickly and for beyond asking prices, regardless of the price point. Typically the more expensive and luxury properties would take a little longer to sell as the pool of potential buyers is smaller, however, with a lack of supply available these properties are being snapped up by people both from the region and those looking to move to the North from other areas.”
Tim Bannister, Rightmove’s director of property data said: “Many of those who are selling in this record-breaking market obviously also face the prospect of buying again in the same market, and being in fierce competition against other buyers. “Having a buyer for your own property, subject to contract, puts those who are buying again in a powerful position compared to buyers who have yet to sell, and agents report that these ‘power buyers’ are more likely to get the property that they want and negotiate the best deal on price.”
“It could be that the property is too niche and has to wait for the right buyer with those specific requirements to come along, but more often it’s due to prospective buyers being underwhelmed by a seller looking for an over-optimistic asking price compared to other properties that are being snapped up at record speed. Acting quickly on a price reduction before the property goes stale can help to get sellers back on track for a speedier sale.”
