Asking prices for homes for sale in the UK have reached record lows in the past month, new figures from Rightmove suggest.
The average asking price jumped more than £ 6,700 in one month to a new ‘all-time high’ of £ 327,797, with buyers flocking to pick up homes with ample outdoor space and homework options.
On a monthly basis, average demand prices rose by 2 per cent amid ‘insane’ buyer activity, and on an annual basis demand prices rose by 5.1 per cent.
Note: Average asking prices have reached a new all-time high, says Rightmove
The figures are striking, but average asking prices are very different from the final price at which a home is eventually sold. A property is only really worth what a buyer is willing to pay for it.
Still, with the demand from buyers so strong, the time it took to sell a home, according to Rightmove, reached its lowest level ever, at around 51 days.
Prospective buyers looking for popular two or three bedroom semi-detached houses can expect to be forced to hang on to the bidding process much faster, as more homes in this category sell within a week than ever before, according to the data.
The rate at which two- and three-bedroom semi-detached houses seem to be selling suggests that the rise in demand is driven by the mass market, ‘where a few buyers will achieve the maximum savings on stamp duty’.
While many are on the hunt for a modest detached house, Rightmove told This is Money that one of the most visited homes on its website in the past month was a 12-bedroom block of flats on the market in London with a guide price of over £ 54million.
Rightmove said the number of sales agreed in the past month was 55 percent higher than over the same period two years ago.
On the central issue of stock levels, Rightmove said that although 145,000 properties were renamed last month, this’ was not enough to meet the buyer’s demand. ‘
‘The Treasury should consider the introduction of stamp duty for downsizers as one way to encourage the release of some essential shares in the market,’ said Tomer Aboody, director of mortgage lender MT Finance.
Richard Freshwater, a director at property group Cheffins, said: “This is the biggest stock shortage we’ve seen on the market for at least the past 20 years.
Stock Problems: Low levels of housing supply coming up for sale remain a problem
Time to Sell: The average time taken to sell a home has dropped, according to Rightmove
Wow: One of the most visited houses on Rightmove has been this London mansion
Luxury: The mansion in London is for sale through Knight Frank for a guide price of over £ 54m
He added: ‘The gloomy five days a week for many is now over, and this has led to areas outside London becoming some of the most in demand.’
Take one example, Mr Freshwater said, a single five-bedroom house near Cambridge drew 27 views a week, received 12 offers and sold quickly for ‘good’ asking price.
The average number of homes on the books of realtors stands at 55, while in November last year it was 66.
In his recent Budget, Chancellor Rishi Sunak extended the postage stamp holiday until the end of June. Since the Federal Chancellor first released the scheme last year, the housing market has sharply shown the demand from buyers – and prices. Rightmove said it received a record 9.3 million visits to its website on April 7 alone, and in March saw people spend 2 billion minutes on its site.
Tim Bannister, CEO of Rightmove’s CEO, said: ‘This is only the second time in the last five years that prices have increased by more than 2% per month, so it’s a big leap, especially in the eye that the restrictions for restrictions are still the movements and activities of the population restricted. ‘
He said: ‘The stars have adapted to this spring rise, with new space requirements for buyers who are part of the constellation in addition to cheap mortgages, holiday extensions for stamp duty in England and Wales, government support for mortgages of 95 % and a shortage of suitable property to buy. ‘
Price Shifts: A table showing what has happened to the average prices for property
‘If you want to buy in today’s frantic market, you have to be on your toes and ready to move faster than ever before,’ Mr Bannister added.
In terms of what the future could hold for the pan-market, Rightmove said it thinks the ‘foam’ after the spring flood is likely to ease as government support began to wane during the pandemic and economic realities hit home. But, it added: ‘Nevertheless, we expect activity to remain robust for the remainder of 2021.’
The extent to which average asking prices have increased varies depending on the location of a property and at what stage of the ladder the buyer is. At the expensive end of the market, average asking prices have risen by 7.4 percent over the past year, while first-time buyers are now looking for asking prices more than 4 percent higher than a year ago.
New ultra-low UK government-backed 5 per cent bailout launched by likes of Lloyds, HSBC, Barclays, Santander and NatWest may give some first-time buyers a much-needed boost, but many may still be locked out competition and high prices.
Mr Bannister of Rightmove said: ‘The combination of insufficient shares and high demand will help support prices, and over the past five years, asking prices of a typical first-time buyer’s house have already increased by an average of £ 23,000, so those t now be able to pay to buy a house, will try to make the move quickly in case prices rise further. ‘
Take a look back: A graph from Rightmove that shows question and answer sessions since April 2016
Wales has seen the biggest jump in average asking prices over the past year, with a rise of 12.2 per cent and price tags hovering around the £ 220,774 mark.
Yorkshire and the Humber saw the second-largest average price, with a 9.4 per cent increase to around £ 214,045. Average asking prices in Scotland have risen by 8.5 per cent to £ 169,649 and homes here take just 33 days to sell on average.
London saw the slightest rise in asking prices, seeing price tags climb 1.4 per cent to £ 635,306. But, in the past month, average demand prices have increased by 1.7 percent. In 64 days, homes in the capital are currently taking longer to sell than anywhere else in the country, Rightmove figures suggest.
Mr Aboody said: ‘It is striking that price changes in London vary depending on the distance to Central London, with the nearest neighborhoods having minimal to no growth over the past year, and some even see prices declining.
‘This can be attributed to the high property values already seen in these neighborhoods and the lack of people who can buy while further afield is affordable and the demand is therefore higher.
‘You’ll get very little for less than £ 500,000 in the most central districts of London, so the holiday stamp duty is purely a bonus rather than a reason to buy. ‘
Figures published by the Office for National Statistics last month showed that average house prices rose by 7.5 per cent in the year to January, up from 8 per cent in December.
In the UK, prices rose by 7.5 per cent to £ 267,000, while in Wales, Scotland and Northern Ireland they rose by 9.6 per cent, 6.9 per cent and 5.3 per cent respectively, the ONS said.
No one really knows what the future holds for the real estate market, and some experts think that a correction is coming. Others, however, believe that the emerging trajectory looks set to go away.
Ben Taylor, the boss of Keller Williams UK, said: ‘House prices have gone stratospheric and if you believe that what is going up should come down, then we should definitely have a correction soon.
‘That said, there have been only two periods in the last thirty years where house prices have fallen over a significant period of time, and so there are smarter bets to be made.
‘If anything, the new low-mortgage mortgages and the interest rates that will fall even further are likely to cause this explosive market to crack.’
Everything in detail: Percentage of monthly changes in average asking prices, by Rightmove
Treat your region: A map showing demand price fluctuations across the country
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