(Alliance News) - House prices hit a new record in May, with the number of sales up 17% on-year, as the momentum of the Spring selling season continued, figures on Monday showed.

Rightmove's house price index showed the average price of property coming to the market for sale rose 0.8% in May to GBP375,131.

The online property portal said pent-up demand from would-be buyers who paused their plans last year is a key driver behind increased home-mover activity despite mortgage rates remaining elevated for longer than anticipated.

The number of sales being agreed during the first four months of the year is 17% higher than last year, outstripping the 12% increase in the number of new sellers coming to market.

Nonetheless, the market remains price-sensitive with average asking prices just 0.6% higher than a year ago.

Larger properties led the price growth, with average prices up by 1.3% compared with last year.

Despite the uptick in prices, sales were taking an average of 154 days to complete, which Rightmove described as "painful".

Rightmove’s Director of Property Science Tim Bannister said despite the latest increase "it's important to remember that prices overall are still only 0.6% ahead of this time last year".

"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," he added.

Bannister expects that the improved market activity levels and conditions this year will result in higher transaction numbers at the end of 2024 than last year.

But he bemoaned the length of time housing transactions were taking to complete, calling it a "frustrating barrier".

"It may seem surreal to be thinking about Christmas in May, but we know that many would-be sellers picture celebrating the festivities in a new home, and to achieve that, now is the time to be coming to market," he pointed out.

By Jeremy Cutler, Alliance News reporter

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