The average price of property listed for sale has increased by 0.8% this month (£2,807) to a new record of £375,131, according to Rightmove, which added that May is typically a strong month for price growth, with new price records having been set in May in 12 of the previous 22 years.

Price growth is still led by the largest homes, with prices in this sector up by an average of 1.3% compared with last year. However, since the last price record set a year ago in May 2023, average prices for all property types are only 0.6% higher, a reminder that the market remains very price sensitive.

Tim Bannister at Rightmove says: “Some predicted that property prices would suffer sharp falls and take a while to recover following the Bank of England increasing the base rate up to 5.25%, where it has remained since August 2023. However, the momentum of the Spring selling season has exerted enough upwards price pressure to reach a new record asking price. From a regional perspective the North East, with the cheapest average prices in Great Britain, has seen the strongest price growth. However, it’s important to remember that prices overall are still only 0.6% ahead of this time last year.”

Pent-up demand is a key driver behind increased buyer and seller activity, despite mortgage rates remaining elevated for longer than anticipated. In the first four months of the year, the number of sales being agreed between buyers and sellers was 17% higher than in the same period in 2023, outstripping the 12% increase in the number of new sellers coming to market.