A shortage of homes for sale and strong buyer demand from buyers will push up house prices by 5.5% in the next three months, according to the latest reallymoving House Price Forecast.

It said prices will increase to a new all-time high of £352,984 in May, despite small dips in March and April.

The home-moving services business says it can predict house price movements by capturing the price buyers have agreed to pay when they search for conveyancing quotes through its comparison site, typically 12 weeks before they complete.

And it claims its house price forecast has historically closely tracked the Land Registry’s Price Paid data.

What’s going to happen when?

Based on deals agreed between buyers and sellers over the last three months, prices will fall by 0.9% in March and 0.2% in April before surging by 6.7% in May – a direct result of buyer competition for a limited supply of homes during February.

Rob Houghton, CEO of reallymoving, said: “Last month we saw some early signs that the market may be beginning to slow but the latest data shows prices rising sharply in May based on activity in February, suggesting that for now the housing market will continue to defy expectations.

“We’re seeing a clash of post-pandemic driven buyer demand and a cost-of-living crisis which is only now really beginning to bite. As yet it remains a seller’s market and the supply/demand imbalance is continuing to push up prices.”