The average price of property coming to market has hit a new record for the fourth consecutive month, rising to £367,501, according to the latest Rightmove House price Index.

This month’s increase of 2.1% is equal to £7,400 and is the highest at this time of year since May 2014.

The figure also marks a national jump of £55,551 in asking prices in the two years since the housing market shut due to COVID. This compares to a rise of just £6,218 in asking prices in the two years before the pandemic.

Rightmove said the figures illustrate that “frenzied market activity” has led to a two-year price growth in cash terms never before witnessed in its 20 years of tracking prices.

The index also confirmed that the number of buyers contacting estate agents is 14% down on the this time last year, when the market still had the stamp duty holiday, but is up by 31% on the more comparable market of 2019. The number of properties available to buy is 55% down on the levels seen in 2019, meaning that supply and demand look likely to remain out of kilter for at least the rest of the year.

Furthermore, the number of sales agreed is up by 12% in the year to date compared to 2019, though the total is down 17% compared to the exceptional market of the same period last year.

Rightmove stated that the numbers suggest that a lack of homes for sale rather than a lack of desire from buyers is what is dictating the pace of the market.

“People may be wondering why the housing market is seemingly running in the opposite direction to the wider economy at the moment,” commented Rightmove director of property science, Tim Bannister. “What the data is showing us right now is that those who have the ability to do so are prioritising their home and moving, and the imbalance between supply and demand  is supporting rising prices.

“Though demand is softening from the heady levels we saw this time last year, the number of buyers enquiring is still significantly higher than during the last ‘normal’ market of 2019, while the number of homes for them to choose from remains more constrained.

“We anticipate that the effects of the increased cost of living and rising interest rates will filter through to the market later in the year, and a combination of more supply of homes and people weighing up what they can afford  will help to moderate the market.”

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