Average asking price for UK real estate has jumped £55,000 since the pandemic started, despite the cost of living crisis and without a “frenzy” market slowdown.
Lightmove said its asking price rose 7,400 pounds (2.1%) between April and May, reaching an all-time high of 367,501 pounds on average.
That means prices have risen 10.1% in the past year, despite concerns about the health of the UK economy.
A real estate website found that the Bank of England’s fourth consecutive rate hike did little to reduce demand.
The Bank has raised its key benchmark rate to 1% this month, signaling that it is ready for further increases to control soaring inflation.
Lightmove said activity levels remain the same and are much higher than pre-pandemic, bringing the number of buyers almost a third compared to 2019 levels.
Consensus sales so far this year have increased 12% compared to the same period in 2019 and are down 17% so far compared to 2021.
Meanwhile, the number of properties available for sale decreased by 16% compared to last year and 55% compared to 2019. According to the picture, the most serious tribe is the three- and two-bedroom semi-detached houses.
Tim Bannister, director of real estate at Rightmove, predicts that rising cost of living and interest rates will start to weigh on prices later this year.
“People may wonder why the housing market now seems to be moving in the opposite direction to the economy as a whole,” Bannister said.
“What the data now shows us is that people who can afford it are prioritizing housing and moving, and an imbalance between supply and demand is supporting inflation.
“Although demand is declining at the staggering levels we saw this time last year, the number of buyers inquiring is still far higher than the last ‘normal’ market of 2019, and the number of homes to choose from is still more limited.”
According to LightMove, the average monthly mortgage payment has risen to the point where it has surpassed the average monthly rent in May.
The average monthly mortgage payment for a typical first-buyer home has risen only 11 per cent (£87) from a decade ago, but has risen 13 per cent (£100) since December last year after four rate hikes. .