New price record as Wales and the north lead the way and London stands still

National average asking price National average asking price by market sector (excluding inner London) Rightmove measured 110,045 asking prices this month nationally, circa 95% of the UK market. The properties were put on sale by estate agents from 11th April to 8th May 2021 and advertised on Rightmove.co.uk.

• New records continue to be set as the average price of property coming to market this month jumps by 1.8% (+£5,767), to a third of a million pounds (£333,564)

• Average London house prices are 2.9 times higher than prices in the northern areas of Great Britain, and although still large this is the smallest ratio recorded by Rightmove since 2013

• While London prices have stood still (+0.2%) since the first lockdown, areas further north have seen double-digit increases, due to the shortfall in supply that suits people’s changed needs and lives:

• Wales leads the way at +13.0%, followed by North West (+11.1%), and Yorkshire & the Humber (+10.5%)

• The north sees greater imbalance between demand and supply than London, with people more likely to move locally and some more able to afford to upsize

This month sees a new national record for the price of property coming to market, hitting an average of a third of a million pounds (£333,564). That is 1.8% (+£5,767) above the previous all-time high recorded a month ago. While the level of new properties coming up for sale is at a similar level to the long-term average, demand continues to massively exceed supply, especially in northern regions. In previous market upturns London has generally led the way, but the capital’s rate of price increase since pre-lockdown March 2020 is now at a virtual standstill (+0.2%) compared to double digit price growth in areas further north.

Prospective buyers are now faced with record prices for newly marketed properties in all regions and countries of Great Britain except London, with three areas seeing average rises of over 10% in the closest available year-on-year comparison. Our year-on-year comparisons compare March 2020 to May 2021, as the property market was suspended for most of April and May last year. Wales is growing the fastest at +13.0%, followed by North West (+11.1%), and Yorkshire & the Humber (+10.5%). The average increase for all regions outside of the South of England is 9.7% (+£19,497). In contrast London lags behind at +0.2% (+£1,547), though it must be stressed that within the capital there are widely varying local markets and market sectors, with some rising in price and others static or falling. This strong market appears to have enough momentum to shrug off the imminent end of the stamp duty holidays in England and Wales. Buyer demand has soared throughout Great Britain (+52% in April 2021 versus April 2019), with similarly strong levels in London (+48%). But it is the north that is seeing the greater imbalance between demand and supply and this is one of the main factors driving prices to new records in all regions except the capital. This supply shortage is particularly marked for typical family homes with three bedrooms or more, with available stock for sale on agents’ books in April down by an average of 50% on the same period in 2019. In contrast properties with two bedrooms or fewer have availability down by 24%.