The average price of property coming to the market hit a record of £375,131, an increase of 0.8% (£2,807) from the month prior, the latest house price index from Rightmove reveals.

May is typically a strong month for price growth, with new price records set in May in 12 of the previous 22 years.

Price growth is still led by the largest-homes, top-of-the-ladder sector, with prices in this sector up by an average of 1.3% compared with last year.

However, since the last price record which was set a year ago in May, average prices are only 0.6% higher overall.

Rightmove says this is a reminder that the market remains very price-sensitive.

Pent-up demand is a key driver behind increased buyer and seller activity, despite mortgage rates remaining elevated for longer than anticipated.

Since the start of 2024, the number of sales being agreed between buyers and sellers is 17% higher than in the same period in 2023, outstripping the 12% increase in the number of new sellers coming to market.

Rightmove says these trends are being driven most by the top-of-the-ladder sector, comprised of four-bedroom detached and five-bedroom plus properties.

A lack of available homes for sale in this sector during the pandemic years alongside the rapid rise, and subsequent volatility of mortgage rates in the post-mini-budget period, meant that activity in this sector was particularly susceptible to some potential movers taking a step back.

Rightmove says that with mortgage rates more stable albeit still high, and greater buyer choice, many who had postponed their moving plans in this sector appear to be returning.

Despite these positive lead indicators for higher transaction levels this year, Rightmove says the average of 154 days between agreeing a sale and legal completion remains a challenge for both agents and movers.

With 62 days on average needed to find a buyer before the legal process begins, it suggests that would-be sellers hoping to be in a new home for Christmas need to take action now.

Meanwhile, analysis shows that properties that need an asking price reduction take more than three times longer to find a buyer compared to those that do not, giving sellers who price right from the outset the edge to sell more quickly.

Rightmove director of property science Tim Bannister says: “Some predicted that property prices would suffer sharp falls and take a while to recover following the Bank of England increasing the Base Rate up to 5.25%, where it has remained since August 2023.”

“However, the momentum of the Spring selling season has exerted enough upwards price pressure to reach a new record asking price. The top-of-the-ladder sector is still leading the way, while from a regional perspective the North East, with the cheapest average prices in Great Britain, has seen the strongest price growth. However, 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.”

Jackson-Stops chairman Nick Leeming comments: “Seasonal demand and an uptick in listings has helped to boost spring transactions, although some may still be waiting in the wings for an elusive interest rate drop to ease affordability constraints. With inflation falling, there is hope the wait may come to an end soon as the Bank of England may look for an economic boost before the General Election.”

“The message here is that lifestyle changes and supply are still the dominating market forces for most, anchoring house prices for the foreseeable future to provide much needed stability and assurance. The more positive macro-economic outlook in recent weeks has even led some to revise house price forecasts for the year upwards from decline to growth; consumer confidence that will likely trickle into a busy summer ahead.”

Propertymark chief executive Nathan Emerson adds: “Spring heading into summer is traditionally a busy time for the housing market and these latest figures may prove an ideal inspiration for sellers to use this as an opportunity to place their property on the market.”