Buyers were expected to push up demand for property over the next few months, but they have driven sellers to a greater level of confidence already. The current average asking price for homes in England and Wales has reached a new record high according to online property website, Rightmove. For the period of May 10 through to June 6, the average asking price increased by 3% to £294,351.

Asking prices in the capital increased by almost 6% following a 2.3% decrease in the last period. The overall annual increase, for both England and Wales was at 4.5%.

New property coming onto the market has slowed, pushing prices up as demand has outpaced supply.

In a previous report Rightmove had reported that there was increased attention for property coming from first time buyers. Whether the interest in property will convert to actual purchases is unclear. Higher prices and strict lending practices are combining to make it hard for first time buyers to climb onto the property ladder. The stricter lending practices are intended to cut down on borrowers getting over their heads with mortgage loans they cannot afford.

Lenders are still offering competitive interest rates and that should push first time buyers, home movers, and homeowners seeking a remortgage to seek out a low interest offer. Some lenders have available deals that are at historical lows making it an attractive time to secure savings for years to come.

The cheapest deals may not last for long however, because as demand grows for lending the competitive environment lenders now operate in will cease to exist.

The crest of the summer buying season in the housing market still lies ahead, and whether the UK will see the same robust buying as last year is yet to be seen.