Home prices in Britain have reached record highs despite high mortgage costs, but the rate of increase has slowed, according to data from property website Rightmove.
The average asking price for residential properties climbed to £375,131 ($474,578) in the four weeks leading up to mid-May, Rightmove reported.
However, the month-on-month rise of 0.8% was the smallest increase recorded so far in 2024. Year-on-year, prices were only 0.6% higher.
Last year, Britain’s housing market experienced a slowdown due to higher borrowing costs.
Recently, however, there have been signs of recovery as falling inflation improves household incomes and hints at possible interest rate cuts.
Tim Bannister, Rightmove’s director of property science, commented on the situation, stating, “The momentum of the spring selling season is not a sign of a return to strong demand.
The market remains price-sensitive, and with prices reaching new records in the majority of regions and mortgage rates remaining elevated, affordability for many home-buyers is still stretched.”
Rightmove noted that the highest price increases were observed in the high-end market, with asking prices rising by 1.3% on an annual basis.