Faster-than-expected rise in house prices

HOUSE prices have risen at a faster-thanexpected rate in May, according to property website Rightmove.

Spring into summer is the busiest season for the housing market, the firm said, as lots of people kick start their moves when the days get longer and the weather warms up.

Rightmove said it expected prices to rise by around 1% at this time of year, but has actually seen prices rise by almost double that in May. The average asking price for a home in Great Britain has increased by 1.8% in May, pushing prices to a record high of £372,894.

The rise comes amid speculation about what might happen in the housing market this year. There remains uncertainty around what could happen to mortgage rates as a result of what’s happening in the wider economy, including changes to the Bank of England’s Base Rate, and how this might affect house prices.

But in May, Rightmove saw demand from potential home-buyers continue to exceed the levels during the same period before the pandemic, with 3% more people enquiring to view properties for sale.

The firm’s property expert, Tim

Bannister, said: “This month’s jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season. One reason for this increased confidence may be that the gloomy start-ofthe-year predictions for the housing market are looking increasingly unlikely.

“What’s much more likely is that the market will continue to transition to a more normal activity level this year following the exceptional home-moving activity of the pandemic years.”