House prices jump on stronger demand - Rightmove

(Sharecast News) - House prices jumped in March, industry data showed on Monday, as confidence in the UK housing market continued to recover. According to the latest House Price Index from Rightmove, national average asking prices jumped 1.5% in March.

That was an improvement on February's 0.9% increase, and above the historic average increase in March of 1.0%. It was also the biggest rise for 10 months.

Year-on-year, prices increased 0.8%. They rose 0.1% in February on the same basis.

The average asking price is now £368,118.

Agreed sales, meanwhile, were up 13% year-on-year. Buyer demand was up 8%, led by larger homes and London, which are less sensitive to mortgages rates, Rightmove noted.

Tim Bannister, Rightmove's director of property science, said: "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."

However, Bannister also sounded a note of caution. Asking prices, he said, still remained £4,776 below their May 2023 peak, while elevated interest rates were continuing to stretch affordability for many buyers.

The UK housing market was hit hard by sharply rising interest rates, record inflation and the cost of living crisis.

It was then further knocked after mortgage rates soared in response to the government's disastrous mini budget in autumn 2022.

However, over the last year inflation has eased and mortgage rates have started to recover, helping to restore confidence.