Rightmove Reports £350,000 Average UK Property Price

Since the start of 2022, property prices have experienced month-on-month growth, and according to Rightmove’s latest report, have now peaked at their highest point on record. The average property price in the UK currently stands at over £350,000 – the highest figure Rightmove has ever reported.

In March, the average price for a UK property hit £354,564, up 1.7% from February’s average – equating to a rise of £5,760. While prices have been increasing at an unseasonably high rate, this was the biggest monthly increase for more than 18 years. With this increase pushing the annual rate of growth to 10.4%, the UK property market continues to go from strength to strength.

This annual growth has been bolstered by almost every region across the country. With the exception of London and Scotland, every region in the UK has reported over 10% increases, highlighting the opportunities in the wider property market.

Rightmove has attributed this monthly surge – and UK price growth more generally – to a combination of reasons, but the country’s chronic undersupply of property is arguably the strongest. The demand for UK property has been surpassing the supply for many months, with Rightmove reporting twice as many buyers as sellers in the current market.

With this combination of competitive price growth and continued demand, it’s no surprise we’re seeing a seller’s market. According to Rightmove, the chance of finding a buyer in the first week of listing a property is higher than it has ever been before at this time of year.

Not only is this demand unusual for Q1, but in comparison to March 2019 (pre-Covid-19), sellers are twice as likely to find a buyer in the first week of listing their property.

Rightmove’s Director of Property Data, Tim Bannister, said: “Many of those who are selling in this record-breaking market obviously also face the prospect of buying again in the same market, and being in fierce competition against other buyers.

“Having a buyer for your own property, subject to contract, puts those who are buying again in a powerful position compared to buyers who have yet to sell, and agents report that these ‘power buyers’ are more likely to get the property that they want and negotiate the best deal.”

What does this mean for investors?

While the growth in UK property prices is making the market less accessible than it once was, it’s also highlighting more opportunities for capital appreciation. The momentum from the pandemic is yet to fade and with prices showing no sign of slowing down, investors could be facing bigger capital gains in a shorter time period.

Additionally, these prices have been consistently increasing despite the recent turbulence in the economy. Not only is inflation at an all-time high, but interest rates have officially returned to pre-Covid levels, meaning there is now more incentive to save rather than spend. However, the UK property market has yet again withstood this economic uncertainty, and continues to be one of the strongest investment assets in the market.

It’s also crucial to remember that buy-to-let property offers two streams of income – capital growth and monthly rents. The average UK rent is on track to reach £1,000pcm in the coming months, which when combined with the opportunities for capital growth, more than compensates for the competitive entry prices we’re seeing.