Average asking prices for properties in the UK have soared by £55,000 during the pandemic, with a 10% increase over the past year Business News

Average asking prices for UK properties have jumped £55,000 since the start of the pandemic, with no ‘frantic’ market downturn despite the cost of living crisis, according to new figures.

Rightmove said asking prices rose by £7,400 (2.1%) between April and May, taking the average to a new record high of £367,501.

This means prices are up 10.1% over the past year, despite fears for the health of the UK economy.

The real estate website found that a fourth successive interest rate hike by the Bank of England had done little to dampen demand.

The Bank raised its main benchmark interest rate to 1% earlier this month and signaled that further increases are in store as it seeks to control runaway inflation.

Activity levels remain high and are significantly higher than before the pandemic, with the number of shoppers up nearly a third from 2019 levels, Rightmove said.

Agreed sales are up 12% so far this year, compared to the same period in 2019, and down 17% year-to-date compared to 2021.

Meanwhile, the number of properties available for sale is down 16% from last year and 55% from 2019. The most acute shortages are for two- and three-bedroom semi-detached homes, according to numbers.

Rightmove property director Tim Bannister predicted that rising costs of living and interest rates would start to weigh on prices later this year.

“People might be wondering why the housing market seems to be going in the opposite direction to the broader economy right now,” Bannister said.

“What the data is showing us right now is that those with the capacity are prioritizing their home and moving, and the imbalance between supply and demand is supporting higher prices.

“Although demand is slowing from the dizzying levels we saw at this time last year, the number of buyers inquiring is still significantly higher than in the last ‘normal’ market of 2019, while the number of houses to choose from remains more limited.”

Average monthly mortgage payments rose to exceed average monthly rent payments in May, Rightmove found.

The average monthly mortgage payment for a typical first-time buyer’s home has risen by 13% (£100) since December last year after four interest rate hikes, although it’s only 11% (£87 ) more than ten years ago. .