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UK house prices registered their largest March increase for nearly 20 years, figures by property portal Rightmove showed on Monday.
UK house prices hit a record high of £354,564 in March, up 1.7% monthly. It was the largest monthly increase in March since 2004.
On an annual basis, prices surged 10%, the chunkiest annual increase since June 2014.
‘This unprecedented price level is being stoked by the greatest imbalance between buyer demand and the number of properties available for sale that we have ever measured at this time of year. This is the strongest spring sellers' market that we have ever seen in several metrics,’ Rightmove said.
‘There are now more than twice as many buyers as sellers active in the market, which is the biggest mismatch between supply and demand that we have ever recorded at this time of year. The speed of the market is further demonstrated by the fact that are there more than one in five - 22% - deals being agreed on Rightmove within the first week of being marketed. This is double the figure for the same period in the more normal market of 2019. Almost half, 47%, are having a sale agreed within the first fortnight, another indicator of high demand and the likelihood of finding a buyer quickly. While these unprecedented numbers are helping to drive prices to new records, they do also show that there are a number of properties that will remain on the market after this time and that may benefit from a price reduction.’
Rightmove said it initially saw lower buyer demand in the wake of Russia's invasion of Ukraine, though this has since ‘stabilised’. It is too early to predict what the wider effects of the invasion are for the UK housing market.
Looking ahead, however, Rightmove commented: ‘We forecast a less frothy market in the second half of the year, as economic headwinds lead to a more evenly balanced market, though demand will still outstrip supply.’
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