The housing market has seen a big surge in buyer demand and increased transactions during the month of March, resulting in a substantial increase in the average house price. According to Rightmove, the UK’s largest property website, the average asking price rose by £5,279 to nearly £370,000, marking a 1.5% increase compared to previous months. This growth surpasses the historical March average of 1% and represents the most significant monthly increase in 10 months.
Rightmove attributes this surge in demand to more people perceiving a favorable opportunity to purchase homes, leading to increased activity in the market. Despite the significant rise in asking prices, the average still remains £4,776 below the peak recorded in May 2023. This indicates that the market is still in the process of recovering from what Rightmove described as a “muted 2023.”
Last week Halifax said the average UK house price was just £1,800 off the peak recorded in June 2022.
Tim Bannister, the director of property science innovation at Rightmove, said the number of sales agreed since the beginning of March was 13% higher than at the same time last year, and that demand for larger homes appeared to be driving most of the price jumps.
Overall signs are very good however, with heightened buyer interest and increased sales activity driving up prices. This trend suggests a more robust housing market compared to 2023.
