New data has revealed that the asking prices of new property grew by just 0.4% during April.
Despite the modest uplift, the Rightmove figures show that this has taken the new national average to an all-time high of £305,732. This is £0.3% above the previous record set in July last year of £304,943.
On a regional level, the strongest rate of growth on a 12-month basis was seen in the North West at an increase of 4.3%. It also represents one of the six regions which set new records; the remaining five were the East Midlands which saw a 4.2% increase, Yorkshire & the Humber which saw prices grow by 2.7%, the South West with an annual uplift of 2.6%, Wales where asking prices rise by 2.4% and finally the East of England, with a more modest growth of 1.2%.
The analysis from Rightmove indicates that nationally, the actual selling price is 96.7% of the final asking price.
Commenting on the figures was Miles Shipside. The Rightmove director and housing market analyst drew attention to the price sensitivity of buyers, as well the impact of low levels of supply.
He stated: “Home buyers are seeing average asking prices at their highest ever level with upwards price pressure getting stronger the further away you move from London. However, higher prices stretch buyers’ willingness to pay or ability to afford them. This month’s increase of 0.4% is the lowest at this time of year since 2008, though the subdued figure could partly be a rebalancing from the seasonally large 1.5% rise the previous month. The earlier Easter Bank Holidays and heavy snow disrupting property marketing will also have an effect on like-for-like comparisons with last year.”
“In the more popular locations and for the property with the right specifications, buyer demand is helping to push prices higher. A lack of choice is nudging prices up to test the ceiling of what the market will pay. It’s not rampant price inflation, and buyers can easily spot a speculative price and ignore a property that is out of line with others nearby, and is also likely to be out of kilter with their pocket.”