​Gloomy predictions now 'looking unlikely' as prices jump in May, says Rightmove

Average house prices increased 1.8% in May, the biggest monthly increase seen this year in what Rightmove says is a delayed response to increased activity at the start of 2023.

The online property portal says prices rose to £372,894 in May, which is also 1.5% higher than the same month last year.

It said the 1.8% monthly rise is “significantly higher than the historic average in May of 1%.”

It said agreed sales numbers are now just 3% behind the same period in 2019 pre-pandemic.

>>See also: Top 50 Housebuilders

>>See also: ‘We’re victims of short-term policy-making’: Interview with Taylor Wimpey boss Jennie Daly

Tim Bannister, director of property science at Rightmove, said: “This month’s strong jump in new seller asking prices looks like a belated reaction and a sign of increasing confidence from sellers, as we’d usually see such a big monthly increase earlier in the spring season.

“One reason for this increased confidence may be that the gloomy start-of-the-year predictions for the market are looking increasingly unlikely.

“What is much more likely is that the market will continue to transition to a more normal activity level this year following the exceptional activity of the pandemic years.”