The latest May house price index for the UK has been released and it’s showing a significant increase in property prices according to Rightmove.

  • The average price of property coming to the market jumps by 1.8% (+£6,647) this month to reach a new record of £372,894 in a delayed response to the higher-than-expected level of market activity since the start of the year:
  • This 1.8% monthly increase is the biggest of the year so far, and is significantly higher than the historic average May rise of 1.0%
  • Agreed sales numbers are currently just 3% behind the last more normal pre-pandemic market of 2019
  • The discount from final asking price to agreed sale price has steadied at an average of 3.1%, in line with normal market levels, reflecting home-mover confidence in the outlook for the market
  • Whilst increased price confidence appears to be more justified in the lower and middle market sectors, there are some signs of over-optimism in the top-of-the-ladder sector, as some discretionary buyers hang back

However, the rise in prices may also be due to a lack of supply, as the number of homes for sale in the UK has decreased by 17% since the same period last year. This may make it more difficult for investors to find suitable properties to purchase, particularly if they are looking for a specific type of property or in a particular location.

The impact of the pandemic has also led to more people seeking larger homes with gardens and home offices, as remote working becomes more prevalent. As a result, detached properties have risen in value by 8.6% compared to last year, while flats have only increased by 1.4%

The latest HPI also identified significant variations in house prices in different regions of the country. In London, for example, average house prices have risen by 2.8% in the past year, with the average price now standing at £496,269. In contrast, the North East has seen a more modest increase of just 1.6%, with the average house price now at £138,456.

Ultimately, success in the property market will depend on a range of factors, including market conditions, investor strategy, and a willingness to adapt and evolve in response to changing circumstances but overall it’s more good news for the property investor sector.

To keep on top of the latest Property Investor Opportunities come and meet the experts at the next Property Investor Show – London ExCel 7/8 October 2023.

Source Rightmove