The asking price of the average home has gone up by £4,996 this month, equivalent to 2.1 per cent, and now stands at £244,706 – the highest April figure ever recorded, says Rightmove.
This is the fourth consecutive monthly rise and takes the increase since the start of the year to £15,717 or 6.9 per cent – the second highest national figure ever recorded and within £1,529 of an all-time high.
On an annual basis house prices have risen by 0.4 per cent.
Rightmove says the combination of more positive market sentiment and seller shortage have fuelled the recent upward price pressure.
The number of newly marketed properties went down 4 per cent in April compared to same period last year
Miles Shipside, director and housing market analyst at Rightmove, commented: “Transaction volumes may be historically low but, paradoxically, new seller asking prices are within a grand and a half of a new record high.
“With mass-market buyers still sitting on the sidelines, the size of the active market is a lot smaller, making it easier for an upswing in activity to feed through to an upturn in prices. With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record.
“This should not be confused with an overall market recovery, as while spring may be here the ongoing chill of the recession is still in the air. However, it is true to say that more estate agents are reporting more activity in more segments of the market.”
Property selling prices edge closer to asking prices
Rightmove research shows a narrowing of the average gap between last advertised asking price on Rightmove and sold price recorded with the Land Registry. In December the discount stood at 3.39 per cent. It has since narrowed to 2.95 per cent.
Shipside said this indicates that sellers are negotiating less and buyers are willing or able to pay more: “While the discount from the asking price on an individual property is very much a product of how realistic that price was, it is a sign of a recovering market if they are paying closer to what sellers ask.”
