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Rightmove: Asking Prices Rise by 6.2% in May

Asking prices for UK properties have risen by over 6% month-on-month following the Stamp Duty surge in property investments from landlords say Rightmove.

Rightmove: Property Asking Prices Rise by 6.2%

Asking prices for UK properties have risen by over 6% month-on-month following the Stamp Duty surge in property investments from landlords say Rightmove.

Analysing properties that would typically be targeted by first-time buyers in their property search, Rightmove found that the average asking price rose by 6.2% in May, as the availability of these properties fell steeply.


The average asking price on a property with two bedrooms or fewer increased by £11,298 in May, with sellers now asking for an average of £194,224 on properties in England and Wales – an 11.4% increase year-on-year.


The rise in prices has been strongly attributed to the surge in property transactions throughout March, a new record according to HM Revenue & Customs, driven by property investors and landlords purchasing properties ahead of the new Stamp Duty levy being introduced on April 1.


Commenting on the findings, Miles Shipside, director of Rightmove, said: ‘It remains to be seen if these prices can be achieved and there may be some over pricing in the market. It is also a reflection of better quality property coming to market in this sector which is now targeting owner-occupiers rather than landlords.’


Mr Shipside also described a ‘property drought’ occurring at the lower end of the market following landlords increasingly focusing on lower priced properties to avoid large Stamp Duty charges, leading to properties in this bracket seeing higher asking prices due to limited supply.