This is the largest rise at this time of year since 2015, and prices are now at a record high in all countries and regions of Britain.
According to Rightmove, high prices combined with an all-time low in the number of available properties on agents’ books are starting to slow the market’s pace.
The number of sales agreed in May was 17% ahead of same period in 2019, falling from the 45% increase in April.
Average prices were up by £67,394 since March 2020 for properties in this sector, up 12.3% compared to 7.5% for all properties.
The number of sales agreed on properties over £500,000 in May was 49% above the same period in 2019.
Welsh prices have risen by 14.6% since March 2020, and also represent the highest jump in buyer demand, up by 44%.
South West prices are up by 11.4% with properties selling more quickly than ever recorded, resulting in the fewest properties available for sale per estate agent of any region in England at 10 per agent branch.
Tim Bannister, director of property data at Rightmove, said: “Buyer demand remains very strong, though with an all-time low in the number of properties available for sale on estate agents’ books and new stock at higher than ever average prices, there are early signs of a slowing in the frenetic pace.
“Since the market re-opened last May in England we have seen huge jumps in the numbers of sales being agreed, but these are now rising at a slower pace.
“Record low interest rates and stamp duty tax reliefs have helped many to afford higher prices, satisfying their pent-up desires for a new home fit for a new era.
“Some of that demand has now been met, and the phasing out of stamp duty reliefs has also taken away some of the urgency to move, though our high traffic and search data indicate that there is still strong buyer demand.
“However, higher prices combined with a lack of fresh choice coming to market are reducing some buyers’ ability or desire to move, and while we expect the market to remain robust, there are early signs of a slackening in the incredible pace of activity that we’ve seen over the last year.
“This super-charged activity cannot go on forever, but we expect the market to remain vigorous for at least the remainder of the year.”
“The desire for a change of lifestyle often comes with the need for a change of location.
“That might be satisfied by buying a second home, or with more flexible working patterns a relocation of one’s main residence.
“Average prices in Wales are well below the national average, offering good value as well as beautiful rural and coastal surroundings.
“Buyer demand is up by 44% compared to a year ago, the highest increase of any part of Britain.
“The South West has been long-established as a second home hot-spot, but has seen renewed impetus from main residence relocators being unshackled from the traditional locations for their daily commute.
“This unprecedented demand has resulted in the lowest ever number of available properties per estate agency branch for any region in the country, down to just 10 compared to the national average of 17.
“Some agents say that they’re pretty much sold out.
“It also has the fastest rate of sale in England for the first time ever, as demand from outsiders and local movers combine to make it the hottest selling region, with 28% of properties selling within a week of marketing on Rightmove.
“Those relocating to these more remote and lifestyle-rich locations from more expensive parts of the country have potentially bigger budgets than local purchasers, causing deteriorating local affordability.”
