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House Price Index May 23


Prices hit record high as new sellers respond to improving market

National average asking price Month Avg. asking price Monthly change Annual change Index May 2023 £372,894 +1.8% +1.5% 288.3 April 2023 £366,247 +0.2% +1.7% 283.

• The average price of property coming to the market jumps by 1.8% (+£6,647) this month to reach a new record of £372,894 in a delayed response to the higher-than-expected level of market activity since the start of the year:

• This 1.8% monthly increase is the biggest of the year so far, and is significantly higher than the historic average May rise of 1.0%

• Agreed sales numbers are currently just 3% behind the last more normal pre-pandemic market of 2019

• The discount from final asking price to agreed sale price has steadied at an average of 3.1%, in line with normal market levels, reflecting home-mover confidence in the outlook for the market

• Whilst increased price confidence appears to be more justified in the lower and middle market sectors, there are some signs of over-optimism in the top-of-the-ladder sector, as some discretionary buyers hang back:

• Buyer demand is 1% lower than in 2019 for top-of-the-ladder properties, compared with 3% above 2019’s level in the second-stepper sector, and 6% above in the first-time-buyer sector

• Average mortgage rates are remaining steady despite another increase in the Bank of England base rate:

• An average 5-year fixed, 15% deposit mortgage is now 4.56%, compared to 5.89% last October

The market is very price sensitive, and it is the most accurately priced homes that are creating the most interest and attracting buyers. Properties that have been on the market for a few months may have gone stale, and their asking price out of line with more realistically priced new instructions, where many sellers are motivated to sell and in tune with the current market. Starting with too high an asking price, thinking you can always reduce the price later can be damaging to the prospects of a sale. We’re now seeing a much more normal market following the pandemic inspired frenzy, with good buyer activity for right-priced property, with many of our new instructions finding a buyer within a week. Movers are beginning to understand the new market dynamics and are not as deterred by changes to interest rates as they perhaps were a few months ago.

Price & activity trends



Regional Trends

London boroughs

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