House prices continued to be a point of property fascination. The figures are divided into two: asking prices and sold prices. Asking price trends give us a brilliant snapshot of how positive the market is.
Rightmove’s March House Price Index revealed sellers are feeling confident, with the average asking price of a new property coming to market rising by +1.1%. This is a value increase of +£3,876 more than last month. The portal says the UK’s average asking price is now £371,870.
Home movers active
Despite rising asking prices, home movers have been very active. The number of sales agreed in March, when compared to this point last year, was +9% higher. This trend should continue, as the number of new sellers coming to market was also 8% higher than a year ago. Property choice was also noted to be at its highest since 2015.
House prices are stable
Moving on to sold prices and the latest Halifax House Price Index, which was released at the start of March, revealed values were stable. Annual property price growth remained unchanged at +2.9%. It leaves us with a new average UK house price of £298,815.
In England, prices in the Yorkshire & Humberside region accelerated the quickest, rising +4.1% annually. Scotland wasn’t far behind, with annual house price growth of +3.8%. Wales posted moderate annual price growth of +2.8%.
The Halifax also used its bank of historic data to confirm which type of property had increased the most in value over the last 12 months. Terraced houses achieved the greatest price appreciation, rising +4.5%. They were followed by detached properties (+4.1%) and semi-detached homes (+3.8%). The house type that saw the smallest value growth was flats (+3.2%).
If you want to achieve the best sold price, new research may sway you when it comes to property presentation. Lemon and Lime Interiors analysed the sold prices of more than 1,500 staged properties, comparing them to the sold prices of non-staged properties. It found staged homes were 18% more likely to sell above the asking price.
Monitoring of rental values continues with an eagle eye. Past reports had shown a softening of rental values, with the cost of new tenancies plateauing and even falling in some regions. In March, a new report showed this trend may be coming to an end.
Rents start creeping upwards
HomeLet’s latest rental index found the UK’s average rent rose slightly in February (its most recent reporting period). This follows four months of consecutive falls. The UK’s new average rent now rests at £1,275.
Rents rose sharpest in the East Midlands, where the cost to rent a property had risen +1.3% in a one month period. Other strong performers included the North East (+1.2%) and Scotland (+1%). Rental values in Greater London, Yorkshire & the Humber and North West stayed the same as the previous month.
Demand for rentals still high
Zoopla’s March Rental Report gave us more detail about tenant behaviour. It says 12 renters are still chasing every available rental property. The portal added there were +11% more rental homes available now, when compared to this point in 2024. Only the West Midlands goes against the grain, where rental supply is -10% lower than last year.
On balance, landlords are sticking with the buy-to-let sector but new analysis shows they are changing tack. Figures lodged at Companies House show the number of companies holding buy-to-let properties has surpassed 400,000, making it the largest single type of business in the UK. This marks a huge switch from sole trader to limited company status for better tax efficiencies.
If you would like to know more about your local property market, please get in touch.
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