Prices of Britain’s most expensive properties soar – First home buyers at a standstill (tables)

The prices of real estate in the UK rose at the highest annual rate in 12 months as more homes at the top of the price scale now come on the market, according to Rightmove.

The average price of properties put up for sale increased by 1.7% compared to last year, to 372,324 British pounds. Prices are now just 570 pounds short of the May 2023 record levels.

Much of the impetus comes from large homes, which include four-bedroom detached houses and all five-bedroom properties.

Rightmove said this side of the market is recording its strongest start to the year in terms of price growth since 2014, with the number of new sellers having up 18% compared to 12 months ago.

After a year of sluggish sales, the recovery in activity in real estate market encouraged even more owners of large homes to sell.

However, would-be buyers looking for their first home still face huge problems, leaving the lower end of the market stagnant.

The highest interest rates of the last 16 years and its ejection inflation the past two years have drained consumer finances. This, in turn, could limit house price growth in 2024.

Rightmove’s figures also miss the stagnation at the top end of the property market, where owners of mansions worth more than £10 million are discounting to attract buyers. These deals are mostly arranged privately, often without announcements or advertisements.

High borrowing costs continue to weigh on less affluent buyers. Asking prices, usually an indicator of seller confidence in the market, are rising at a slower pace for areas that rely more on first- or second-home buyers and which remain price-sensitive, according to Rightmove.

However, sales numbers have now returned to 2019 levels. This is despite the fact that buyers are facing very difficult conditions, with the medium interest rate of 5-year mortgages to be 4.84%, compared to 2.45% in April 2019.

The UK recorded this year’s highest number of property sellers going on the market in one day at the end of March. This number was also the third largest since 2020.

In accordance with Bloombergprospective homebuyers may pause their search in the summer due to the holidays. Uncertainty surrounding the country’s expected elections in the second half of the year may also put downward pressure on sales.

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