Average Asking Prices for Newly Marketed Homes Jump by £5,000 in March

The housing market in the UK is showing signs of strength and optimism as the average price of a newly marketed home has increased by more than £5,000 in March. According to data from property website Rightmove, house sellers have raised their asking prices by the largest amount in 10 months, indicating a resurgence in buyer demand during the busy spring selling season.

On a national level, typical home prices have grown by 1.5 per cent or £5,279, bringing the average asking price to £368,118. While prices are still below last May’s peak, the 8 per cent increase in buyer demand compared to the previous year suggests a positive shift in the market.

Tim Bannister, Rightmove’s director of property science, noted that sellers are feeling more confident and optimistic, leading to above-average price increases. However, he also highlighted the importance of being realistic and negotiable in pricing expectations due to affordability challenges for many buyers.

Regions like the East Midlands and the South West of England saw significant monthly jumps in asking prices, indicating a broad-based market revival. Despite the positive trends, sellers are advised to approach pricing with caution and flexibility to attract buyers in the current environment.

The report also mentioned that mortgage deals are being pulled from the market swiftly, underscoring the need for proactive decision-making for both buyers and sellers. With interest rates stable and increased availability of properties, now may be an attractive time to buy or sell property, according to estate agents group Propertymark.

As the housing market shows signs of improvement, the rental sector is also experiencing a cooling of growth in rental prices, providing additional insights into the broader real estate landscape in the UK.