House prices have hit a new record high despite the uncertainty surrounding a possible Brexit vote.
According to the latest Rightmove house price index, housing market momentum pushed property prices up by 0.8% to a new high of £310,471 last month.
The lack of supply and desire to buy has led to a fall in the time it takes to sell a home to 57 days – the fastest ever measured by Rightmove since it started monitoring in 2010.
Miles Shipside, Rightmove director and housing market analyst, said: “In many parts of the country, the over-riding factor of supply outstripping demand has so far overcome buyers’ usual reluctance to make major financial decisions at times of political uncertainty.
“Most seem to be getting on with the certainties they can control, namely if you find a suitable property snap it up. Indeed the figures for average time to sell indicate that properties are being snapped up more quickly than ever.”
There are some signs of referendum uncertainty with fewer new sellers coming onto the market.
Newly-marketed property numbers down are 5.3% compared to average at this time of year. Most reluctant are owners of larger homes, with numbers down 6.6% on average.
Shipside said: “If you’re debating whether to trade up and make a big financial commitment you naturally might hesitate before putting your property on the market just a few weeks before you know the vote outcome.
“With mere days to go the number of new listings is still about 95% of the norm for this time of year, so the drop-off is relatively small in spite of what many are calling the biggest vote of our generation. This could mean that people are struggling to assess what the impacts might be, or are choosing to ignore them until they become more apparent.
“A vote to Remain should mean that the housing market quickly returns to its previous norm, but a vote to Leave would create political and economic uncertainty, which historically has had more serious repercussions.”
The North West saw the biggest monthly rise, with an increase of 2.2% to £183,482. This was followed by Wales, where prices edged up 2.0% to £185,145.
London was the only place to see a fall in May, with prices dropping 0.2% £643,117.
Kai Logan of Bradleys Estate Agents in Somerset, Devon and Cornwall said: “Activity in the market place remains strong with figures on instructions, viewing and offers all very positive. There appears to be a slight hesitancy with buyers committing to a purchase, particularly on higher priced properties. We expect to see heightened sales activity following the EU referendum when people know the outcome, regardless of the result.”
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