Housebuilders gained on Monday morning after Rightmove announced average property prices had increased at their fastest annual pace in a year in April.
At £372,324, average prices had climbed by 1.7% on a year ago, and by 1.1% on last month, Rightmove said in a report.
This comes as the number of sales agreed jumped by 13% compared to April last year, bringing the figure in line with 2019 levels.
“It has been a positive start to the year in comparison to the more muted start to 2023,” Rightmove director Tim Bannister commented.
“However, agents report that the market remains very price-sensitive, and despite the current optimism, these are not the conditions to support substantial price growth.”
Rightmove added average prices were nearing a record high, recorded last May, with top-of-the-ladder homes buoying values after enjoying the strongest start to the year since 2014.
Persimmon PLC (LSE:PSN) was among housebuilders rising on the news, up 2.6%, with Bellway PLC (LSE:BWY) and Taylor Wimpey PLC (LSE:TW.) also climbing 1.5% and 1% respectively.
Barratt Developments PLC (LSE:BDEV), Redrow PLC (LSE:RDW) and Vistry Group PLC (LSE:VTY) were up 1.2%, 0.7% and 0.4% respectively in the meantime.