Another record high for property asking prices

A third of a million pounds! That’s now the average price of a home in Britain, according to property website Rightmove.

The average asking price for a home rose to a new record of £333,564 this month.

This asking price represents a 1.8% increase compared to April, up by £5,767 in cash terms.

Rightmove says that demand continues to massively outstrip supply, especially in northern parts of England.

However, property prices in London are at a “virtual standstill”.

As a result, buyers now face a record price for newly-marketed homes in all regions and nations, except London.

House prices outside of southern England increased by an average of £19,497 in the past year, but only by £1,547 in London.

Tim Bannister, Rightmove’s director of property data, said:

“Buyer affordability is increasingly stretched, but there’s obviously some elasticity left to stretch a bit more as many buyers are squeezing their way into higher price bands.

“This high demand, with both willingness and ability to pay more, has pushed the average price of property coming to market to a new all-time high of a third of a million pounds.

“In another twist, it is the regions of Britain further north that are leading the way, with some degree of catching up between average prices in London and the north.

“While the gap remains very large, with average prices in London still 2.9 times higher than those in the North, this ratio is now at its smallest since 2013.

“The pandemic has given a greater focus on the home, and in 2020 we saw a surge in southern coastal and rural areas. So far 2021 is proving to be the year of the northern mover, not only satisfying their pent-up housing needs, but in doing so also narrowing some of the huge price gap with London.”