Property prices hit record high

House prices have hit a record high of £350,000, jumping by nearly £6,000 in a single month amid a rush to buy ahead of rising mortgage costs. The figures from Rightmove reveal that homeowners increased their asking prices by 1.7% to an average of £5,760 in March, cashing in on the largest monthly rise during spring since 2004. Sellers are taking advantage of a shortage of homes for sale combined with surging demand from buyers rushing to purchase before rising interest rates end the era of cheap debt. The Bank of England last week made its third consecutive increase to the Bank Rate since December, to 0.75%. The pace of the market is expected to cool in the second half of the year, according to Rightmove, as economic headwinds take their toll. Growth in asking prices was strongest for larger homes, with sellers adding £23,619 to the price tag of four-bedroom properties since February, a jump of 3.8%. Some, however, have simply become overconfident. Rightmove's Tim Bannister said: "Agents report that despite the current high demand, a price reduction is often needed if a property has not found a buyer within the first two weeks."

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