Asking prices are up again in March, marking the third consecutive month where they have increased following a dip at the end of 2024.
The monthly average asking price for properties has grown by 1.1% since last month, meaning the typical house coming to market for sale is £371,870, new house price index data shows.
This rise also represents a 1% year-on-year increase in asking prices, according to new data published by Rightmove.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
It comes as more people are set to pay stamp duty from 1 April, potentially adding thousands of pounds in tax to home purchases.
Unless the policy is reverted in the upcoming Spring Forecast, those who buy in March could be among the first to pay extra tax on their new homes as a completion of their purchase is unlikely to happen before the 31 March deadline.
Rightmove says there is a log-jam of around 575,000 purchases currently in the legal completion process as many try to avoid the stamp duty deadline, with 74,000 estimated to just miss it.
The number of house sales agreed has grown since last year, with 9% more transactions going through compared to March 2024. This is a positive sign that the hike in stamp duty will not disrupt the growth of the housing market too heavily, according to Rightmove.
Chris Rosindale, Chief Operating Officer at Connells Group, echoes this, saying: “We haven't seen any slowdown in buyers' appetites to purchase a home, even now knowing that they won't meet the deadline of 31 March.”
Colleen Babcock, property expert at Rightmove, said that March is likely to be “one of the strongest months of the year for sellers”, citing historic averages, but warned that “sellers can’t just rely on these historic averages for success, as this year they are facing a decade-high level of competition”.
The extra activity in the market is encouraging sellers to offer competitive prices, she continued.
Sarah Bush, head of residential sales and lettings at Cheffins, said “the year has gotten off to a good start, with a marked increase in the number of homes coming to the market in comparison to last year”.
She argues that though the wider economic outlook may be uncertain, sellers are signalling that they are “tired of sitting on the fence and really want to get on with moving this year”.
How have asking prices changed regionally?
Unsurprisingly, there is a great deal of variance between asking prices when looking across the UK.
The area in Britain where asking prices are seeing the fastest month-on-month change is Scotland, with prices growing by 3.8% since last month, bringing the average price of a house in the country to £197,643. This also represents a growth of 4% year-on-year.
Scotland is also the area where houses are selling fastest, as the average time it takes to find a buyer is just 42 days.
Meanwhile, the second-fastest growing area is Wales, where asking prices have grown by 2.9% since last month, bringing the average price of a property in Wales to £262,795. The time it takes to find a buyer here is slower, with an average of 80 days.
Rightmove’s data also shows asking prices in London, the Midlands, and Yorkshire have grown slower than much of the rest of the country, as month-on-month change stands at 1% or less.
London is still the most competitive market for houses, with the average price of a home in the region being a whopping £695,885 – the highest in the country.
A full list of the change in asking prices sorted by region is provided below:
Region | Month-on-Month change | Year-on-Year change | Days to find a buyer |
|---|---|---|---|
Scotland | 3.8% | 4% | 42 |
Wales | 2.9% | 2.5% | 80 |
North East | 1.9% | 3.2% | 59 |
South East | 1.7% | 0.6% | 70 |
North West | 1.5% | 2.6% | 67 |
South West | 1.5% | -0.3% | 75 |
East of England | 1.4% | 1.2% | 69 |
London | 1% | 1.3% | 69 |
West Midlands | 0.8% | 0.8% | 69 |
Yorkshire and The Humber | 0.6% | 2.4% | 74 |
East Midlands | 0.4% | -0.2% | 75 |
-
8 of the best properties for sale for around £2 millionThe best properties for sale for around £2 million – from a former coach house in Richmond, London, to a substantial Georgian property with a gazebo by a lake in Banbury, Oxfordshire
-
New Chase bonus deal takes savings rate to 4.75% – is it worth it?Chase’s latest savings deal propels it into first place in the best-buy tables, but there are some pitfalls to look out for
