Yahoo Finance UK property asking prices jump to record £354,000 in March
Property asking prices have broken through the £350,000 barrier for the first time as the average price hit £354,564 in March.
According to data from property site Rightmove (RMV.L), the average asking price increased by 1.7% — or £5,760 — this month, the largest rise seen at this time of year since March 2004.
In addition, the annual rate of increase now stands at 10.4%, the highest that Rightmove has recorded in any month since June 2014.
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The largest monthly price rise has been recorded in the “top of the ladder” sector, predominantly comprising properties with four bedrooms or more. This has seen a 3.8% — or £23,619 — jump due to high demand and the greatest scarcity of supply.
There are now more than twice as many buyers as sellers active in the market, which is the biggest mismatch between supply and demand that has ever been recorded at this time of year.
Tim Bannister, Rightmove’s director of property data, said there are strong reasons for homeowners to make it their goal to sell this spring.
“Firstly, the potential to achieve a record price for their property. Secondly, the imbalance between high buyer demand compared to low available property supply is the greatest that we have ever seen for the start of a spring market, meaning that the chance of being able to pick and choose between several suitable buyers is strong.
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"Thirdly, the proportion of properties finding a buyer within the first week is also at an all-time high for this time of year, so sellers with an appropriately priced and well-presented property can expect a shorter marketing period than the norm.
“Those who weren’t ready to take advantage of last year’s rush now have another chance to get on the market while these conditions last.”
More than one in five (22%) deals are being agreed on Rightmove within the first week of being marketed. This is double the figure for the same period in the more normal market of 2019. Almost half (47%) are seeing a sale agreed within the first fortnight, another indicator of high demand and the likelihood of finding a buyer quickly.
London continues to lead, as homes coming up for sale in the capital have an average asking price of £664,000. In comparison, the average price tag of properties coming up for sale in Scotland stands at £178,461.
Haringey saw the biggest increase in London from February, with the average price currently at £655,764 — a 4.7% jump. Hillingdon saw prices climb 2.7% to £543,437.
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There were only three boroughs in London that experienced a price drop compared to February prices. Properties in Lambeth dropped 1.3% and were coming to the market in March at an average £649,307.
In Newham asking prices fell 0.4%. Still, homes for sale in this area come with a £447,913 price tag.
Hounslow saw prices retreat 0.2% with the market asking price standing at £569,704.
Despite the market’s appetite, there are a number of properties that will remain on the market after this time and that may benefit from a price reduction.
Bannister added: “Agents report that despite the current high demand, a price reduction is often needed if a property has not found a buyer within the first two weeks. It could be that the property is too niche and has to wait for the right buyer with those specific requirements to come along, but more often it’s due to prospective buyers being underwhelmed by a seller looking for an over-optimistic asking price compared to other properties that are being snapped up at record speed.
“Acting quickly on a price reduction before the property goes stale can help to get sellers back on track for a speedier sale.”
The more mass-market “second-stepper” sector is the fastest selling, with just over half (50.3%) of these homes finding a buyer within the first two weeks of marketing.
