The average price of newly listed homes for sale rises by 0.8% (+£3,023) in March to £371,042, according to Rightmove.
This is a typical seasonal increase following the unusual flat month in February, suggests the property portal.
The return of monthly price growth reflects the start of the spring selling season, but the pace of growth remains modest, in line with the average over the last 20 years but lower than the last two.
The number of homes for sale remains a key factor limiting more significant price growth, as the 11-year high level of supply is giving buyers more choice and forcing new sellers to be more restrained and realistic.
Buyer affordability has improved, with wages growing faster than house prices while mortgage borrowing power has increased.
However, as the spring selling season ramps up, sellers may need to price even more competitively this year to find a buyer in the high supply market.
Rightmove says competition to find a buyer is fierce, which has led to the longest time to find a buyer at this time of year since 2013.
Affordability remains a key driver of activity in the current price-sensitive market, indicated by regional and sector splits.
The lower‑priced North of England, Scotland and Wales are seeing stronger annual price growth than the more expensive southern England, with the North West leading the way with a 2.6% annual increase in prices compared to London’s 2.1% fall.
Meanwhile, smaller one and two bedroom properties, which are typical starter homes, have fallen in price by a national average of 0.4% over the last year.
By contrast, middle market second-stepper homes are up by 0.6% and prices for the largest top-of-the-ladder homes are flat.
Slight price falls for typical first homes may provide a window of opportunity for deposit-ready first-time buyers this spring, though saving up a deposit remains a challenge when average rents are near record levels and cost-of-living pressures persist.
These regional and market sector differences highlight how national average figures don’t always reflect the unique circumstances of different movers.
This article is taken from Landlord Today