Asking prices hit regional highs in almost half of regions
Recent research has revealed that the average asking prices of new homes to the market has risen by 1.5% over the past month.
According to Rightmove, price highs have been reached for both first-time buyers and second steppers, with respective average prices at £189,840 and £272,031.
On a national basis, four out of 11 regions saw average asking prices reach new records, with the market suffering a fall of 5% in property supply compared to the same time in 2017.
Rightmove claim that the 1.5% uplift seen this month is the most significant rise for this time of year since 2007.
The first three months of 2018 has also seen a rise of 3% in the price of property coming to market; whilst this is stronger than the corresponding period last year, it does not reach the 3.6% increase seen in 2016. This was attributed to the stamp duty changes being implemented.
Commenting on the figures was housing analyst from Rightmove, Miles Shipside.
He stated: “It remains to be seen if this month’s eleven-year price rise high for March is a catch-up anomaly after two more subdued price rise months, or an early sign of price pressure building up a real head of steam as we enter the spring market. Either way, sellers need to be mindful of increasingly stretched buyer affordability, and the more they increase prices the more buyers will hit their ceiling on the amount they are able to save for a deposit and borrow for a mortgage.
“There does however still seem to be potential price headroom in parts of the country, especially in some of the regions in the north, and in the more mass-market sectors. However, sooner or later higher prices tend to mean fewer people can afford to move, and that is one of the factors keeping the annual rate of increase subdued at 2.1 per cent.”