Buoyant sales of large homes helped drive house prices to their highest level in 12 months, figures on Monday showed.
The Rightmove house price index revealed the average asking price of property coming to the market in April rose by 1.1% or £4,207 month-on-month, to £372,324.
This left prices just £570 short of the record in May 2023 while the annual rate of price growth is now 1.7%, the highest level for 12 months.
Rightmove said a key factor behind this growth is the largest and most expensive homes, which are seeing their strongest start to the year for price growth since 2014.
However, the market remains price-sensitive and is operating at different speeds, with prices and activity rising more slowly in the more mortgage-dependent first-time buyer and second-stepper sectors.
The number of new sellers coming to the market is up by 12% compared to the same time one year ago, and the number of sales being agreed is up by 13% as both seller and buyer activity rebound.
Rightmove said there appears to be a window of opportunity for those considering a move to act, with a busy summer of sporting events and a likely General Election creating more home-mover distractions than usual.
Emphasising this year’s boost in Spring buyer and seller activity, March 28 saw the highest number of new sellers coming to the market in one day so far in 2024. This was also the third largest number since August 2020 - only pipped by Boxing Day 2022 and 2023 - with many sellers keen to capture buyer attention over the Easter weekend.
Rightmove Director of Property Science Tim Bannister said the market had rebounded ‘from a much more subdued Spring last year.’
‘However, agents report that the market remains very price-sensitive, and despite the current optimism, these are not the conditions to support substantial price growth,’ he added. ‘Sellers who are keen to secure their sale will still need to price realistically for their local market and avoid being overambitious at the start of marketing to give themselves the best chance of finding a buyer.’
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