Rightmove has revealed that the average price of property coming to market up in April was up by 1.3% (+£3,843) to set a record high of £307,033.
Its latest house price index report said that the stamp duty deadline gave early impetus to bottom of the market and had a knock-on effect of energising the higher sectors of the market.
April’s rise is driven by second-stepper and top of the ladder sectors, Rightmove said, while smaller properties in first-time buyer/buy-to-let sector saw a monthly price drop of 1.4%.
While buy-to-let momentum at the bottom of the market has now dropped away, demand remains high with record visits on Rightmove in March.
Tanya Jackson, Yorkshire Building Society’s head of corporate affairs, said: “The buy-to-let rush boosted house prices in April, however, now that the stamp duty increase has come into force we should see house price inflation normalise in the coming months. Looking to the long term trends, prices are still increasing well beyond wage growth on an annual basis and are likely to continue to do so in the future, regardless of an expected slowdown in activity around the EU referendum.
“Demand is likely to continue to outpace supply as a result of both the backlog of people looking to buy their first home, along with enduring interest from investors attracted to the rate of return the property market has to offer.
“The prospect of homeownership is bleak for many aspiring first-time buyers, despite our research showing that 69% of young Britons believe homeownership is essential to their success in life. Given that buying a home is such a key milestone in people’s lives, it is clear that more should be done to enable people to own their desired property.
“The UK must develop a strong construction pipeline to address this issue and make homes more affordable in the long term. However, the supply deficit is likely to take a number of years to repair, and the government should consider further measures to make getting on to the property ladder easier.”
