House prices reach highest level in 10 months in March
Green shoots continue to emerge in the property market as March has welcomed the highest rise in house prices in 10 months.
According to a report by Rightmove, the average price of newly marketed properties rose by £5,279 this month to £368k.
The figure trumped the average March increase of 1.0 per cent and is the biggest leap in 10 months.
The number of sales being agreed is now 13 per cent higher than at this time last year and buyer demand is now eight per cent higher than the year before.
Despite the above average price increases in the opening three months of the year, asking prices are still £4,776 below their peak last May.
In London house prices rose by 0.9 per cent to £686k, remaining the most expensive in the UK.
Rightmove said London has seen the biggest increase in buyer demand, both overall and for top-of-the-ladder properties, compared to this time last year.
“The return to the office, wage increases, stable house prices and the slowing of inflation have all played their part in increasing buyer interest in living in the capital again,” it said.
Tim Bannister, Rightmove’s director of property science, added: “March is typically a strong month for asking price growth, as both buyer and seller activity levels rise and the spring selling season gets underway.
“However, the stronger than usual price growth this March indicates that new sellers are feeling much more confident, with some perhaps being over-optimistic, that there is enough buyer activity and affordability in their local market to achieve a higher price.”
Britain’s housing market has shown signs of recovery this year despite mortgage rates rising and the economy slipping into a technical recession in the last quarter of 2023.