Market entrants £3,500 pricier in April: Rightmove

The price of new-to-the market properties increased by its largest value since 2016, according to new data from Rightmove.

The average price of a new-to-the market property rose by 1.1 per cent in April, equivalent to £3,447, the report says.

Meanwhile, overall house prices continued to fall on an annual basis, declining by 0.1 per cent, while growing by 1.1 per cent when looked at since March.

Furthermore, prices in the family home sector rose 0.7 per cent, compared to an average of 0.1 per cent across all other sectors.

The number of sales agreed dropped 0.4 per cent year-on-year, despite the number of people coming to the market rising 0.7 per cent.

Rightmove adds that the average asking price for a property in the UK is £305,449.

On a regional basis, every area saw growth in April, with Yorkshire and Humber leading the way at 1.9 per cent month-on-month. This was followed by the South East, at 1.7 per cent.

North London estate agent Jeremy Leaf comments: “On the face of it, the Rightmove increases look fairly spectacular but asking prices are rising due to a shortage of stock.

“When you look beyond the numbers it is apparent that they include the 50 per cent of homes that do not sell as well as those that do.

“Asking price is a marketing tool, not a valuation, so this is a useful guide to market movements, not least because the survey is now long-established and around 90 per cent of all estate agents subscribe to it.”

Mortgage Advice Bureau head of lending Brian Murphy says: “It is not exactly surprising to see that according to this set of data, the family homes market remains resilient.

“After all, for those who need more room to accommodate growing offspring, or indeed have to relocate due to schooling, the decision to move is rarely a discretionary one.

“Regardless of any ongoing Brexit uncertainty, today’s report points to the right time being now for these particular purchasers.”

Yomdel founder and chief executive adds: “While it is important to take any data based on monthly asking price trends with a fair pinch of salt, an increase in market activity is consistent with seasonal trends seen at this time of year.

“It would seem continued defiance by sellers to accept current market conditions is resulting in asking price trends climbing ever higher, however, the positives to take are a return of stock hitting the market and a reduction in the time it’s taking to sell.

“We have been highlighting for some time that for those buying a home, rather than an investment, Brexit uncertainty isn’t the deterrent that it has been portrayed as, with the strong performance of the family home sector providing clear evidence of this.

“With yet a further delay now confirmed, this buoyancy should start to return to other areas of the housing market for the next six months at least.”

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