Booming prices lift UK housing market and set new record for England and Wales


The average property on the market this month has a price tag of £294,351, Rightmove has reported.

The new high is £8,218 more than a previous record set in April, and a surprise fall in the supply of homes coming on the market in recent weeks has added to the upward pressure on prices, the property website said.

Asking prices reached new records across southern England as well as the Midlands this month, as the supply of properties for sale tightened further, increasing the imbalance between supply and demand from buyers.

The number of properties coming to market was down by 8.5 per cent on the same period a year ago, while last month has also seen a 3.9 per cent fall in the supply of new homes, the report said. Experts previously suggested some potential sellers and buyers had been putting their plans on hold to await the outcome of the General Election.

Miles Shipside, director of Rightmove, said that while there has been an upturn in buyer demand following the election, there has also been an “unanticipated” post-election fall in the supply of new properties.

Shipside added: “Many potential sellers have so far failed to come to market. This has pushed up some of the asking prices of those properties that have been marketed, meaning buyers are faced with paying a new average record price high for the more limited choice available.”

Average asking prices reached a new record this month of £613,922 in London, £388,617 in the South East, £287,776 in the South West, £309,407 in the East of England, £188,962 in the East Midlands and £201,223 in the West Midlands.

Wales and the North East of England were the only areas in the study to see asking prices fall year-on-year.

In Wales, average asking prices fell by 1.4 per cent to reach £174,680. In the North East, the average asking price fell by 0.3 per cent to reach £144,210.

Shipside said: “It all seems set up for an active second-half housing market in 2015, barring any external shocks to the economy.”

Lulu Egerton, a partner at Strutt & Parker in Chelsea, agrees.

He said: “There is certainly a lot more energy, appetite and confidence out there. Transaction levels have risen slightly.”

Peter Woodthorpe, director of Readings in Leicester, added: “The demand has been strong from people looking for all types of property, from flats to large detached houses.”

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