Property asking prices rose to hit another record high this month, according to Rightmove, as buyer demand continues to outstrip the supply of homes being put up for sale.
The average asking price of a UK property rose by 9.3 per cent to £369,968 in the year to July, marking the sixth consecutive month that a record high was recorded.
The pace of growth slowed down slightly from June's 9.7 per cent growth, but the property website has revised up its forecasts for the year as it believes supply will continue to struggle to meet strong demand.
It now predicts asking prices to rise by 7 per cent in 2022, up from a previous forecast of 5 per cent. That is in contrast to recent predictions by Capital Economics, which said house prices in Britain could fall by up to 10 per cent 'soon' as rising interest rates cause property markets across the globe to crash.
Rightmove said the number of new sellers coming to market is up by 13 per cent compared to this time last year, but available homes to buy are still 40 per cent down on June 2019 levels. This is expected to keep pushing prices higher.
Demand from would-be buyers is also a quarter higher than it was in June 2019, according to the property portal, although it is coming off the boil from last year's frenzied market, falling 7 per cent.
Rightmove’s director of property science, Tim Bannister, said: 'With such an imbalance remaining between supply and demand, prices look underpinned, and we would therefore only expect typical smaller seasonal month-on-month falls, rather than more significant price falls in the second half of the year.
'This has led to us revising our annual price growth prediction for the end of the year from 5 per cent growth to 7 per cent, although this would still mark a slowing from the 9.3 per cent seen this month.'