U.K. Asking Prices Hit Record in the Face of Raging Demand

Good news for home sellers across the U.K. in May spelled bad news for buyers as property price gains reached double digits, according to a report Tuesday from Nationwide.

Asking prices swelled 10.9% last month compared to May 2020, the highest level recorded since August 2014. The gains pushed up the average asking price in the country to a record £242,832 (A$442,819), which is £23,930 higher than the same time last year, the bank and mortgage provider said.

The U.K.’s property market spent half of last May shuttered following the arrival of the coronavirus pandemic. In England—Scotland, Wales and Northern Ireland reopened on separate timetables—restrictions on the industry were eased in mid-May, and allowed activity to resume in accordance with government-mandated guidelines.

On a monthly basis, prices rose by 1.8% in May from April, slightly less than the 2.3% jump recorded between March and April, according to Nationwide.

“In the same way as other sectors of the economy, house prices have been driven higher by a supply squeeze as the U.K. comes out of the pandemic,” Tom Bill, head of U.K. residential research at Knight Frank, said in a statement on the report’s findings.

“Add in a stamp duty holiday and the fact pent-up demand has been building for years against the backdrop of Brexit, and the result is a burst of house price inflation,” he continued. “More supply is starting to come online, which will redress the balance. We therefore expect U.K. house price growth will slow down after the summer, declining to 5% by the end of 2021.”

Sonny Bono’s former estate, a piece of local history in Palm Springs, California, has come up for sale.

The desert residence, on the market for $7.49 million, was home to the singer, songwriter, congressman and Palm Springs mayor from 1986 until his death in 1998, records show.

“Opportunities like this simply do not come around often,” said listing agent Louise Hampton with Berkshire Hathaway HomeServices California, who brought the home to the market last month.

“A hillside estate of this size, with this level of privacy and this historical connection stands among the most compelling offerings in today’s desert market.”

Bono was perhaps most famously the other half of singing duo Sonny & Cher, but also served as the mayor of Palm Springs from 1988 to 1992, and as the U.S. representative for California’s 44th district from 1995 until he died in a skiing accident in 1998 at the age of 62.

Located in the city’s Mesa neighbourhood on a hillside parcel, the colourful seven-bedroom property combines Mid-Century Modern design with Italian influences across its almost 9,000 square feet and multiple structures.

The house last changed hands in 2021 for $4.35 million. The sellers couldn’t be reached for comment.

There’s a great room, a formal dining area with a rock fireplace, a chef’s kitchen with two wine fridges.

The seven bedrooms include a primary suite with a walk-in closet and a “spa-style” bathroom with a soaking tub and steam shower, according to the listing. Several of the home’s guest suites include private patios or separate entrances.

Outside, there are lawns, olive trees, date palms and cacti alongside terraces, a new travertine pool deck, a pool, a tennis court and an oversize motor court with space for more than a dozen vehicles.

U.K. Asking Prices Hit Record in the Face of Raging Demand

Double-digit annual increases left the average asking price at £242,832 in May.

The desert residence belonged to the singer, who also served as mayor of the California city, for more than a decade.