UK property asking prices beat record in market 'frenzy'

ASKING prices for UK homes hit a record high for a third-straight month, driven by a shortage of properties on the market.

Online property portal Rightmove said that the price sellers sought in April was 9.9 per cent higher than a year ago at 360,101 pounds (S$632,976). All regions and all segments of the market hit record highs for the first time since 2007.

Britain's housing market continues to boom despite 3 back-to-back interest rate increases and a squeeze on household finances from rising taxes and energy bills. The market is suffering from a chronic under-supply of new homes for sale.

"It can't and won't continue like this, but with the demand and supply imbalance being so out of kilter, it looks like any substantial slowdown will be gradual in coming and be a soft rather than hard landing," said Tim Bannister, director of property data at Rightmove.

The report, released on Monday (Apr 25), also showed that:

• More than half of properties sold at or above the asking price, the highest level on record.
• Sellers were able to find a buyer twice as fast as in 2019, in just 33 days from listing the property to marking it sold, the fastest ever rate.
• Monthly asking price growth was highest in the southwest of England, where homes sold most quickly, in an average 28 days. BLOOMBERG