UK house prices hit record high in May - Rightmove

20th May 2024 07:45

(Sharecast News) - The average UK house price hit a new record of £375,131 in May, driven by pent-up demand and momentum from the Spring selling season, according to data released on Monday by Rightmove.

House prices pushed up 0.8% on the month following a 1.1% increase in April.

On the year, prices were up 0.6% in May following a 1.7% jump the month before.

Rightmove said pent-up demand from would-be buyers who paused their plans last year was a key driver behind increased home-mover activity despite mortgage rates remaining elevated for longer than expected.

Tim Bannister, Rightmove's director of Property Science, said: "Some predicted that property prices would suffer sharp falls and take a while to recover following the Bank of England increasing the Base Rate up to 5.25%, where it has remained since August 2023. However, the momentum of the Spring selling season has exerted enough upwards price pressure to reach a new record asking price.

"The top-of-the-ladder sector is still leading the way, while from a regional perspective the North East, with the cheapest average prices in Great Britain, has seen the strongest price growth. However, it's important to remember that prices overall are still only 0.6% ahead of this time last year. The market remains price-sensitive, and with prices reaching new records in the majority of regions and mortgage rates remaining elevated, affordability for many home-buyers is still stretched."