The average asking price for homes coming to market has hit a new record of £377,182, according to Rightmove, despite the recent stamp duty rise and a decade-high level of stock for the time of year.
Asking prices rose by 1.4% in April – equivalent to £5,312 – marking the first monthly price record since May 2024. The increase is larger than the seasonal average for April, as both buyer and seller activity remains strong. New buyer demand was up 5% year-on-year in March, while the number of new sellers rose by 4%.
Colleen Babcock, property expert at Rightmove, said: “We’ve seen our first price record in nearly a year, despite the number of homes for sale being at a decade-high. The increased choice seems to be bringing more movers into the market, with both buyer and seller numbers up as the market remains resilient.”
However, she cautioned that sellers should price carefully in the face of strong competition. “The high level of supply in the market right now means that buyers are likely to have plenty of homes in their area to choose from, and an overpriced home will stick out for the wrong reasons,” she said.
“Homes that don’t need a reduction in price are more likely to find a buyer, and to find that buyer in less than half the time.”
Rightmove’s data shows that the recent stamp duty increase in England has had a limited impact on completion activity. The level of agreed sales falling through has remained steady, and nearly 24,000 fewer buyers were in the completion queue at the end of March – the first drop in that figure during the month since 2020.
Regionally, a divide is emerging. The Midlands, North, Wales and Scotland all saw new price records in April, alongside stronger buyer demand compared to last year. In contrast, the South East and South West recorded more subdued increases in both prices and interest.
London saw a new price record driven by inner boroughs, but buyer enquiries were lower than a year ago – and the capital is seen as more exposed to global economic shifts.
With market attention turning to the potential knock-on effects of President Trump’s recently announced tariffs, some economists expect the Bank of England could move to cut rates faster than anticipated. If so, that may feed through into lower mortgage costs and a boost to affordability, though average five-year fixed rates remain elevated at 4.72%.
“It’s important to remember that among records and national trends, Great Britain’s housing market is made up of thousands of diverse local markets, each uniquely responding to market changes and world events,” said Babcock.
“London, for example, is likely to see greater knock-on effects from US tariffs than the rest of Great Britain, while Northern regions appear to be performing more strongly post-stamp duty rise.”
Nathan Emerson, CEO of Propertymark, commented: “It is encouraging to witness the housing market continue to deliver growth, despite the increasingly complex economic challenges we face at the moment.
“Although the rush from many people in England and Northern Ireland to beat stamp duty threshold changes has now concluded, we now progress into the spring and summer months, which typically deliver strong momentum for the sector.
Emerson added: “We remain in a position where inflation is on a potential uneven footing, and this may impact any decision the Bank of England might make regarding interest rates when they next meet on 8 May.”
Tom Bill, head of UK residential research at Knight Frank, said: “The recent tariff turbulence underlines why sellers need to be realistic when setting asking prices, particularly in a market where supply is rising more quickly than demand.
“The economic backdrop is bumpy but downwards pressure on mortgage rates as financial markets increasingly price in the risk of an economic slowdown will be positive for demand.
“The risk is that tariffs prove to be inflationary and start putting upwards pressure on borrowing costs, but we still expect modest single-digit house price growth this year as needs-based buyers drive demand.”
Read the orginal article: https://propertyindustryeye.com/asking-prices-hit-record-high-as-buyers-absorb-stamp-duty-rise/
