The average asking price for a property in Britain has hit a record high, with the average price reaching £375,131 in May, Rightmove has found.

In its monthly house price index (HPI), the real estate portal revealed that the average asking price had jumped by £2,807 (0.8%) month-on-month in May, as sellers’ confidence continues to grow.

Rightmove said that this is partially a result of "pent-up demand" from would-be buyers who paused their plans last year, who are now driving increased home-mover activity, despite mortgage rates remaining at higher levels for longer than anticipated.

Year-on-year, house prices have increased by 0.6%, while the number of sales agreed in the first four months of the years has jumped by 17% compared to the same period last year.

The annual increase in May follows on from a jump of 1.7% in April.

Director of property science at Rightmove, Tim Bannister, said: "Some predicted that property prices would suffer sharp falls and take a while to recover following the Bank of England increasing the Base Rate up to 5.25%, where it has remained since August 2023. However, the momentum of the Spring selling season has exerted enough upwards price pressure to reach a new record asking price.

"However, it’s important to remember that prices overall are still only 0.6% ahead of this time last year. The market remains price-sensitive, and with prices reaching new records in the majority of regions and mortgage rates remaining elevated, affordability for many home-buyers is still stretched."

The regions to see the largest month-on-month increases in asking prices were the West Midlands and the South East, with jumps of 1.2% and 1.4% respectively.

In these regions, the average asking price now stands at £295,507 and £494,300 respectively.

For annual increases in asking prices, the North East was the best performer, with asking prices increasing by 5.8% to £190,158.

Scotland (£196,619) and Wales (£265,271) also performed well annually, with jumps of 2.7% and 2.2% respectively.

In London, the average asking price for a property sits at £697,193 in May, increasing by 0.2% month-on-month and 0.1% annually.

Chairman at Jackson-Stops, Nick Leeming, added: "Seasonal demand and an uptick in listings has helped to boost spring transactions, although some may still be waiting in the wings for an elusive interest rate drop to ease affordability constraints. With inflation falling, there is hope the wait may come to an end soon as the Bank of England may look for an economic boost before the General Election.

"The message here is that lifestyle changes and supply are still the dominating market forces for most, anchoring house prices for the foreseeable future to provide much needed stability and assurance. The more positive macro-economic outlook in recent weeks has even led some to revise house price forecasts for the year upwards from decline to growth; consumer confidence that will likely trickle into a busy summer ahead.

"In particular, demand for detached homes and prime country properties are attracting the highest competition from buyers, as beauty spots come into their own, with the sun finally out and people aiming to move by the end of the year. Places like the Cotswolds, Essex and Hampshire have seen a remarkable uptick in buyer enquiries in the past six weeks, notably from families looking for top schools."

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