The average asking price of a house in the UK has increased by £40,000 over the past five years delivering a revenue increase of £536 on average per sale for estate agents, the latest housing market data suggests.
This increase is part of the latest Rightmove monthly property market update which shows that asking prices increased by 0.9% this month driven mostly by a leap of 2.6% at the top of the property ladder.
The average house price has increased from £268,000 to £308,000 since 2014 which, based on a 1.4% average commission rate and a price achieved ratio of 96.3%, means agents received £4,152 per sale inclusive of VAT.
Rightmove says four out of eleven regions in the UK are ‘bucking any Brexit blues’ including Wales, the West and East Midlands and the North West.
But the property market remains soft elsewhere where the number of homes coming to market dropped by 6.5% during May, although average stock per agent increased during April to 50 per branch.
“Price increases are the norm at this time of year, with only one fall in the last ten years, as new-to-the-market sellers’ price aspirations are under-pinned by the higher buyer demand that is a feature of the spring market,” says Miles Shipside (right), Rightmove’s housing market analyst.
“The 0.9% monthly rise is consistent with the previous two years’ average rise of 1.0% over the same period.
“What will seem inconsistent to some, given the ongoing uncertainty of the Brexit outcome, is that four out of eleven regions have hit record highs for new seller asking prices.”
Nationally, the Spring market effect is apparent with ‘time to sell’ dipping from 89 days four months ago to 74 days during April.