- Average prices up by 1.3% for top-of-the-ladder
- May typically strong month for price growth
- Shares in UK housebuilders higher on news
The average price of a property coming to the market for sale in May hit a new record of £375,131 up 0.8% or £2,807 in the month, according to data from online property portal Rightmove (RMV).
The reason for the modest upwards price pressure was due to the spring selling season, said Rightmove, adding ‘May is typically a strong month for price growth, with new price records having been set in May in 12 of the previous 22 years.’
TOP OF THE LADDER
The top-of-the-ladder sector is still leading price growth, with average prices up by 1.3% compared with last year.
The number of sales being agreed during the first four months of the year is 17% higher than last year, outstripping the 12% increase in the number of new sellers coming to the market.
The news sent shares in selected house builders higher in morning trading including Bellway (BWY), with Barratt Developments (BDEV) up nearly 1% to 528p, and Persimmon (PSN) up over 1% to £14.88.
EXPERT VIEW
Daniel Austin, CEO at specialist property lender ASK Partners, said: ‘The property sector is recovering. Rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential.
‘In the realm of commercial real estate, factors like physical condition, location, and age significantly influence a property's value. Well-maintained properties boasting modern amenities tend to command higher prices, while neglected ones may struggle to attract tenants or investors.
‘In the current market, the emphasis has shifted towards the importance of location and quality over the yield on debt or cost. We anticipate opportunistic acquisitions of prime properties in prime locations.’
‘A (Royal Institute of Chartered Surveyors) RICS survey uncovered that non-traditional market segments, such as aged care facilities, student housing, data centres and life sciences real estate are yielding the most robust returns.’
