First-time buyer prices up 4%: haart

This is in contrast to average house prices across England and Wales which rose by 0.6% on the month but fell by 2.7% annually.

Additionally, the number of first-time buyers registering onto the market has risen by 5.2% on the month but fallen by 18.1% on the year, according to haart's figures.

Overall, new buyer registrations increased by 2.5% on a monthly basis and 3.8% annually but the number of properties coming onto the market fell by 1.1% over the month and by 5.9% on the year.

Paul Smith, CEO of haart, commented: “Brits’ appetite to move home remained very health in May, as buyer registrations continued to creep up by 4% across England and Wales, and by a very significant 9% in London. At the same time, housing stock continues to diminish, and as a result, there are now 28 buyers chasing every instruction across London, and 12 across England and Wales.

“While we normally see the market cool down after a spring bounce, vast pent up demand will ensure momentum continues into June and July. In particular, families looking to be in their new home for the new school year are having to scramble to find a suitable property in time. A lack of larger homes on the market means that families paid £9,085 more for detached homes last month, than they did the year before.

“A lack of new homes to move into is also forcing large numbers into rental accommodation. In fact, we have seen a 30% increase in tenant demand on the year in London. Landlords who are considering selling up should bear this in mind. The reality is that tenant demand will always outstrip rental supply, and the yields to be gained are still far more favourable and a safer bet than the majority of other investment opportunities available.

“Hopefully, the result of the Conservative Party leadership contest will provide the country with the reassurance to move forward. Despite political uncertainty, the need to move home will always be there. But the reality is that the UK housing market thrives under positivity. If the new prime minister can provide a strong vision of the UK’s post-Brexit future, greater stability and confidence will follow, which should lead to an uptick in transactions.”