UK House prices beat record as homes sell faster than ever

Average house prices in the UK have hit a new record high of £360,101, according to one of UK’s leading online property portal.

London-based Rightmove indicated that the price sellers sought in April was 9.9 percent higher than a year ago at £360,101. The property website described it as a “frenzy” and said all regions and all segments of the market hit record highs for the first time since 2007.

The country’s housing market continues to witness an exponential growth rate, thanks to the rising demand amid the return to city life. It is pertinent to note that despite three back-to-back interest rate increases and a squeeze on household finances from rising taxes and energy bills, Britain’s housing market is suffering from a chronic under-supply of new homes for sale.

Industry data reflects that seven boroughs are riding on a double-digit growth and properties in UK’s capital are selling the fastest they have in a year. For instance, London’s millionaire playground of Kensington and Chelsea are enjoying the biggest annual hike, with property prices rising 13.8 percent to £1.74 million, making it is the most expensive place to live in London.

Thanks to the supply and demand imbalance in the region that is triggering the price rise.

Month-on-month prices have also risen by an average of 1.6 percent (+£5,537), and over the last three months by £19,082. This is the largest three-month price increase the index has ever recorded.

Rightmove’s Director of Property Data Tim Bannister noted, “The economic headwinds of strongly rising inflation and modestly rising interest rates are being kept at bay by the even stronger tailwind of property market momentum that has carried over from last year.”

“While there is growing economic uncertainty, our current market statistics show there is greater certainty that your property will sell more quickly than ever before, and likely at a record price, Bannister explained. “It can’t and won’t continue like this, but with the demand and supply imbalance being so out of kilter, it looks like any substantial slowdown will be gradual in coming and be a soft rather than a hard landing.”

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. SSIL does not guarantee the accuracy, legality, completeness, reliability of the information and or for that of subsequent links and shall not be held responsible for any action taken based on the published information.