May 2022 House Price Index

The latest Rightmove May 2022 House Price Index shows that average asking prices have risen more than £55,000 in the past two years, compared to a £6,000 rise in the two years before the pandemic.

Demand too remains high according to Rightmove with the number of buyers contacting estate agents in the month 31% higher than the more normal 2019 market, but down 14% year-on-year.  Sales too are up 12% year to date compared to the same period in 2019 but down 17% year to date compared to 2021.

Speed of market means available properties down 16% compared to last year and down 55% compared to 2019, with new stock most desperately needed for two and three bedroom semi-detached homes.  Consequently, this seems to suggest that a lack of stock is driving the market rather than a pressing desire from buyers.

Tim Bannister, Rightmove’s Director of Property Science, commented;

“People may be wondering why the housing market is seemingly running in the opposite direction to the wider economy at the moment . 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.”

You can read the full Rightmove May 2022 House Price Index here.

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