Asking prices for homes across the UK soared to a record average price in early April due to a surge in housing demand and a shortage of homes.
According to a Rightmove report, the price of property coming to market reached a new all-time this month.
The average new seller asking price climbed up by 1.6% to £286,133 – surpassing a previous high set in June 2014.
Monthly increases in England were the highest in Greater London and the north east, with the average asking price in those areas rising to £594,585 and £146,361 respectively.
The number of newly market homes so far this year has dropped by 4 percent compared to the same period in 2014.
Rightmove said that traffic to its website surged by nearly 20 percent in March, year-on-year, to over 115 million – an indicator of robust demand for homes.
With asking prices increasing to a record high, and the general election less than a month away, Rightmove said that policies “to ensure more homes are made available” will be an important election topic.
The Labour Party pledged to increase new home-building up to 200,000 homes a year.
While the Tories announced a Thatcher-style social housing policy plan to give 1.3 million housing association tenants the chance to buy their homes.
Miles Shipside, Rightmove director and housing market analyst said:
“Record high housing demand and an under-supply of homes have delivered a new all-time high in the price of property coming to market in the month before the election. The high cost of housing is a big concern for many home-hunters, so the contents of the respective party manifestos and well thought-out sustainable solutions to the lack of affordable housing supply will be high on many voters’ agendas too.”
Adding:
“While the annual rate of price increases may be dropping back, down from 5.4% last month to 4.7% this month, it’s of little comfort to buyers as even more modest increases stretch buyers’ finances into new territory with prices at record average highs. Furthermore, the rapid fall in general inflation means that the inflation-adjusted rate of house price growth remains high.”