Average British house price hits record high of £375,000

According to Rightmove, the average British house price reached a record high of £375,131 in May. The average price of properties coming to market increased by 0.8%, or £2,807, from the previous month.

The property website’s report indicated that pent-up demand from would-be buyers who postponed their plans last year is a key factor driving increased home mover activity, despite mortgage rates remaining elevated longer than anticipated.

Sales agreed in the first four months of this year were 17% higher compared to the same period last year.

May is typically a strong month for price growth; new price records were set in May in 12 of the past 22 years, according to the report. Since the last record in May 2023, average prices have increased by only 0.6% overall.

Rightmove’s director of property science, Tim Bannister said: “The momentum of the spring selling season has exerted enough upwards price pressure to reach a new record asking price.”

On average, it takes five months from agreeing a sale to legal completion. In total, it takes over seven months from listing a property to completing the move. Therefore, sellers who want to celebrate Christmas in a new home should be putting their homes on the market around now.