Rightmove’s house price index for March 2016 has revealed that the average price of a property coming to market in England and Wales has passed £300,000 for the first time.
The report said challenges facing both first-time buyers and those trading up are highlighted by the 50% increase in just 10 year; there has been a £100,000 jump in new seller asking prices from £200,980 in March 2006, to £303,190 today.
Meanwhile, Rightmove said affordability constraints have been emphasised by average wage growth of only 22% over last 10 years.
The 3% price rise in March (+£3,903) is the second-highest at this time of year since the 2008 credit crunch.
Jeremy Duncombe, director of Legal & General Mortgage Club, said: “House price inflation persists but the level of increase has slowed, giving hope to those searching for their perfect home. If prices are to ever normalise relative to wages, levels of housing supply must be dramatically increased.
“As long as we fail to build enough houses to meet both the current shortfall and future demand, house prices will grow faster than both wage growth and inflation, pricing many out of the market and fuelling Generation Rent.
“New innovations, such as modular housing, can support the core housebuilding industry. Legal & General is aiming to build thousands of modular houses to help tackle the country’s chronic production problem which presently sees just 130,000 homes built each year, with a requirement for 250,000.
“Sustainable, durable modern materials and proven technology will enable us to create high-quality homes meeting a wide range of housing needs and helping to solve the UK’s housing crisis.”