Asking prices for UK homes increased at their highest rate in almost two decades as demand vastly outstripped supply and despite soaring inflation, according to property website Rightmove.
Asking prices recorded between February 13 and March 12 were 10.4% higher year on year and 1.7% higher than the previous month’s reading – the biggest monthly jump since 2004.
They have now broken through the £350,000 barrier for the first time as the average price hit £354,564 in March.
Rightmove said the number of prospective buyers was double the number of homes for sale, a record for the time of year.
“We forecast a less frothy market in the second half of the year, as economic headwinds lead to a more evenly balanced market, though demand will still outstrip supply,” it said.
The UK property market soared during the Covid pandemic as the government suspended stamp duty payments and people started looking for bigger homes during lockdowns as more worked from home. However, surging inflation has led to three interest rate rises since December, although these seem to have had little impact on house sales.
