House sellers' asking prices have soared to a new high in a further sign that confidence is returning to the market, a property website has reported today.
There has been a 2.1 per cent month-on-month rise which pushed average prices to £249,841 in May, Rightmove has revealed, with new record prices set in London, the South East, and East Anglia.
It marks the strongest start to a year for asking prices since 2004, with average prices rising by more than £20,000 so far in 2013.
New highs: Average asking prices in London (pictured) breached the £500,000 mark for the first time as the national average soared.Prices in London broke then half a million pound milestone for the first time, standing at £509,870 - more than double the national average and an 8.6 per cent rise on a year ago.
The biggest month-on-month rise took place in the north, increasing by 4.2 per cent to a typical price of £152,689, while East Anglia rose by four per cent to £233,447.
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Rightmove director Miles Shipside said the new records were being driven by a 'definite southern bias', as the South East saw the second highest annual growth behind London, with asking prices now standing at £325.489.
The only regions which registered annual falls were Yorkshire and Humberside, and the East Midlands, which fell 1.1 per cent and 0.6 per cent respectively.
The new national peak is around £3,600 higher than the previous high recorded in June last year.
It comes hot on the heels of research from another website, Zoopla, which reported last week that the number of sellers who drop their asking prices has fallen to the lowest number in three years.
The Government's Funding for Lending scheme meanwhile has given lenders access to cheap cash, enabling them to slash the rates on mortgages and increase the number on offer since last August.
This, coupled with the launch of another government scheme, Help to Buy, is expected to prompt more would-be buyers to make the jump onto the property ladder in coming months.
At the same time there is still a shortage of homes in many areas of England and Wales at the moment, which seems to be encouraging sellers to stand firm on their prices.
The study quoted an estate agent in London, which has had strong interest from overseas buyers, describing activity levels as 'ridiculous'.
