Property prices hit record but growth continues to slow

A 1.1 per cent rise in April pushed the average price in England and Wales beyond the previous record of £310,471 set in June 2016 as the number of agreed sales reached its highest level since 2007, according to Rightmove’s latest House Price Index.

Growth is being driven by a buoyant first-time buyer sector, which saw prices expand by 6.5 per cent year-on-year to new record of £194,881.

But the monthly growth rate was below the 7-year spring average of 1.6 per cent, while the annual rate of expansion is now just 2.2 per cent - the lowest recorded since April 2013.

The biggest monthly increases were seen in the Wales (7.6 per cent) the east of England and the south west (both 2.8 per cent), while Greater London was the only region to see a drop in prices (-2 per cent).

Martin Shipside, Rightmove director and housing market analyst, said: “There are signs of a strong spring market with the number of sales agreed achieved at this time of year being the highest since 2007. 

“It remains to be seen what effect the run-up to the snap election will have, though any slowdown in activity will be counter-balanced by the market’s current fast pace. Indeed, in locations where choice of suitable property is limited hesitation could mean losing out to others who still decide to act.”

Kevin Shaw, national sales director at estate agency Leaders, commented: “Our experience of the market last month very much mirrors the findings of Rightmove’s House Price Index: March saw a record number of new instructions for Leaders and was our second highest month ever for sales agreed. At the same time, with good levels of available stock, we carried out a record number of viewings. 

“The forthcoming election is unlikely to have a significant effect on the buoyancy of the market. The underlying fundamentals are still in place and we are expecting seasonal activity to remain robust as we head into the summer months.”

simon.allin@ft.com