House prices across England and Wales rose by 0.6% on the month but fell by 2.7% on the year, with the average house price now sitting at £219,060, estate agent haart has found.
New buyer registrations have risen by 2.5% on the month and by 3.8% annually. The number of properties coming onto the market this month fell by 1.1% and by 5.9% on the year.
Paul Smith, chief executive of estate agent haart, said: “Brits’ appetite to move home remained very health in May, as buyer registrations continued to creep up by 4% across England and Wales, and by a very significant 9% in London.
“At the same time, housing stock continues to diminish, and as a result, there are now 28 buyers chasing every instruction across London, and 12 across England and Wales.
“While we normally see the market cool down after a spring bounce, vast pent up demand will ensure momentum continues into June and July.
“In particular, families looking to be in their new home for the new school year are having to scramble to find a suitable property in time. A lack of larger homes on the market means that families paid £9,085 more for detached homes last month, than they did the year before.
“A lack of new homes to move into is also forcing large numbers into rental accommodation. In fact, we have seen a 30% increase in tenant demand on the year in London. Landlords who are considering selling up should bear this in mind.
“The reality is that tenant demand will always outstrip rental supply, and the yields to be gained are still far more favourable and a safer bet than the majority of other investment opportunities available.”
Haart said that hopefully, the result of the Conservative Party leadership contest will provide the country with the reassurance to move forward.
Smuth added: “Despite political uncertainty, the need to move home will always be there. But the reality is that the UK housing market thrives under positivity.
“If the new Prime Minister can provide a strong vision of the UK’s post-Brexit future, greater stability and confidence will follow, which should lead to an uptick in transactions.”
In May, there were 12 buyers chasing every property across England and Wales. The market has become less efficient this month, as the number of transactions fell by 4.5% on the month, while the number of viewings has increased by 1.9%.
The average purchase price for first-time buyers has risen by 1.4% on the month and by 4.4% on the year. This comes as the number of first-time buyers registering onto the market has risen by 5.2% on the month but fallen by 18.1% on the year.
The average amount first-time buyers are paying for a deposit has fallen by 1%, while also falling by 3.7% on the year.
The average property price in London has risen by 2.2% on the month but has fallen by 1.1% year-on-year. Meanwhile the number of new buyers entering the market has risen by 3.5% from the previous month and by 8.7% from the same time last year.
The number of tenants entering the market across England and Wales has risen by 6.7% on the month and by 5.5% on the year.
The average rent is down 1.5% month-on-month and 3.8% year-on-year and now sits at £1,261 pcm across England and Wales.
Tenant demand in London has increased by 8.8% on the month, and has risen by 30.6% on the year. London rents are down 0.3% month-on-month but have risen by 7.1% year-on-year.