...and properties are selling at the fastest pace ever recorded, according to the latest Rightmove house price index.
Its figures show that the average
price of property coming to market hit a new all-time high of £327,797,
following a 2.1% monthly jump. This figure shatters the previous record, set in
October last year, by over £4,000. The number of sales agreed is up by 55% on
same period two years ago, reducing the stock of properties that are available
to buy to the lowest proportion ever recorded. 145,000 properties were newly marketed
this month, but Rightmove says this is still not enough to meet buyer demand.
Rightmove says the 'buying
frenzy' for new stock has pushed the average number of days to sell a property
to its lowest ever level and the number of houses selling within a week to its
highest ever level.
Two and three-bedroom
semi-detached houses are being snapped up quickest, with 30% of those that are
being marked as sold by agents having been on the market for less than a week. Rightmove
says this is now the fastest-selling market it has measured since its records
began.
Tim Bannister, Rightmove’s director of property data, said: “This is only the second time over the past
five years that prices have increased by over 2% in a month, so it’s a big
jump, especially bearing in mind that the lockdown restrictions are still
limiting the population’s movements and activities. The property market has
remained fully open, and is fully active to such an extent that frenzied buyer
activity has helped to push the average price of property coming to market to
an all-time high. The stars have aligned for this spring price surge, with
buyers’ new space requirements being part of the constellation alongside cheap
mortgages, stamp duty holiday extensions in England and Wales, government
support for 95% mortgages and a shortage of suitable property to buy. There’s
also growing optimism due to the vaccination roll-out, which is helping drive
the momentum for a fresh start in fresh surroundings. It does mean that this
spring’s buyers are facing the highest ever property prices, though with
properties selling faster in the first two weeks of April than ever previously
recorded by Rightmove at an average of just 45 days to be marked by the agent
as sold, it seems that those buyers are not deterred. Almost one in four (23%)
properties that had a sale agreed in March had been on the market for less than
a week, which is also the highest rate that we’ve ever recorded. If you’re
looking to buy in the current frenetic market then you need to be on your toes
and ready to move more quickly than ever before.”
Director of Benhham and Reeves, Marc von Grundherr, commented: “The top end of the market is driving current performance with the strongest rates of house price growth and, unlike the regular market, this train is unlikely to come off the tracks when the stamp duty holiday expires. While a considerable cash saving in stamp duty tax is nice, it’s not the driving force behind prime property purchases and so we’re not seeing the mad scramble to complete that is causing havoc in lower price tiers. It’s very much a case of the hare and the tortoise in this respect and while the general market is sure to run low on steam come the end of the year, the high-end market is likely to keep moving forward at a strong and consistent pace. We’re seeing this in London more than anywhere at present, having lagged behind and, in fact, suffered to the greatest extent over the last year, the market is now starting to turn and at a pace that will ensure a cleaner bill of health come September and beyond.”
You can read the rest of the article in the Financial Reporter.
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