Average UK house price hits record high of £372,894

The average house price has reached a record high this May after jumping by £6,647 month-on-month, according to a property website.

Across Britain, the average asking price for a home coming to market is £372,894, Rightmove said. The 1.8% month-on-month increase in the average asking price is the biggest of the year so far.

Tim Bannister, Rightmove's director of property science, said: "This month's strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we'd usually see such a big monthly increase earlier in the spring season.

"One reason for this increased confidence may be that the gloomy start-of-the-year predictions for the market are looking increasingly unlikely.

"What is much more likely is that the market will continue to transition to a more normal activity level this year following the exceptional activity of the pandemic years.

"The market is still very price-sensitive and it is important that new sellers do not damage their prospects of a sale by overpricing initially and reducing later, with agents reporting that it’s the realistically priced new instructions that are selling best."

The number of buyers making inquiries to estate agents about homes for sale is now 3% higher than at this time in 2019, led by buyers taking their first or second step on the property ladder, Rightmove added.

Speaking to TalkTV's Julia Hartley-Brewer in April. housing expert James Hummerstone-Pope said: "Housing prices are obscene at the moment.

"When we look at the average UK house price compared to the average UK salary, it's over ten times what people earn that they're spending on a home. That's just absolutely obscene.

"The reality is that we're just not building enough. Rather than holding our hands up and saying we're struggling, it's: 'let's just brush that under the carpet and not build as many'."