Rightmove reports April housing market surge

Rightmove has reported a surge in housing market activity over the past month, with prices up by more than 2% on average and selling times falling to close to their lowest ever level.

The property portal said prices rose by 2.1% in April, the largest month-on-month rise in over a year, following on from a rise of 0.8% in March. Average prices are now at their highest ever level, of almost £328,000.

The firm said its monthly report, compiled from listings of around 200,000 properties on its website, showed the average time to secure a buyer had dropped to 51 days, close to the lowest figure recorded of 49 days seen last October.

However, since the start of April the average time has fallen even further, to just 45 days, its lowest ever level.

The firm said that more properties had come on to the market in the past month, following a drought of supply at the start of the year. However the  supply was still not enough to meet the demand.

The figures come a week after the Halifax reported a surge in prices over the past month, although this recovery follows a weak start to the year, particularly in London. A report by Molior last week found the fewest number of sales had been achieved for almost a decade.

Tim Bannister, Rightmove’s director of property data, said the 2.1% price rise was only the second time over the past five years that prices have increased by more than 2% in a month, and came after “frenzied buyer activity”.

He said: “The stars have aligned for this spring price surge, with buyers’ new space requirements being part of the constellation alongside cheap mortgages, stamp duty holiday extensions in England and Wales, government support for 95% mortgages and a shortage of suitable property to buy.”

The figures come as the government today launched its new scheme to ensure the supply of 95% loan-to-value mortgages, by provision of government guarantees.

Richard Freshwater, director at estate agent Cheffins, said: “This is the biggest lack of stock we’ve seen on the market for at least the past 20 years. Demand is huge, created by a perfect storm of low interest rates, the stamp duty holiday and changes in people’s working patterns.”