Rightmove Reports Largest Increase in Property Listing Prices in 10 Months for March

In March, average property asking prices in the UK experienced a 1.5% increase, reaching £368,118, as reported by Rightmove. This latest data, focusing on newly-listed homes, indicates a £13,000 rise since December. However, the average asking price remains £4,776 below the peak observed in May 2023.

This month’s growth is the most significant in 10 months and surpasses the historical average March increase of 1% seen over the past 22 years. Rightmove’s findings reveal that all UK regions experienced a rise in asking prices in March, with only three areas reporting lower prices compared to the previous year.

The increase is attributed to a surge in both buyers and sellers entering the market. Rightmove observed a higher volume of buyer inquiries and stronger sales compared to last year. The traditional spring boost in the property market is also contributing to the upward price trend, as noted by Tim Bannister, a property analyst at Rightmove. He commented that the market’s performance in the first quarter exceeded expectations, though prices haven’t yet reached the May 2023 peak.

Sales agreements since early March were 13% higher than last year, driven primarily by larger and more expensive homes, where sales are up 18%. Inquiries for larger properties have increased by 12%, compared to an 8% rise for all property types.

London, in particular, has seen a significant increase in buyer inquiries, influenced by factors such as returning to offices, wage increases, stable house prices, and slowing inflation. Marc von Grundherr, director of Benham and Reeves estate agents, noted a continued high level of activity in the London market, especially in the super-prime segment, where the higher cost of borrowing has less impact.

Despite increased inquiries, the average time to sell a property remains high at 71 days, the longest for this period since 2019, though down from 78 days in January. Properties priced attractively are being quickly selected by buyers, while overpriced ones linger on the market. North London estate agent Jeremy Leaf observed that more listings mean buyers have more choices and are not rushing into decisions. The market remains price-sensitive, with only realistically priced properties drawing significant attention. Leaf advised that sellers receiving inquiries early in the marketing process are more likely to find buyers, capitalizing on the increased demand.