Average asking price of new UK homes ‘hits record high’

The common asking price of homes approaching to the market in Britain has hit a record excessive, in accordance with figures from the property web site Rightmove, and for the primary time property brokers are itemizing extra homes as offered than they’ve on the market.

The web site’s month-to-month snapshot of new listings confirmed sellers are asking for a mean price of £323,530, a rise of 1.1% since final month, and 5.5%, or £16,818 greater than this time final yr.

It is the newest in a string of studies exhibiting a booming housing market fuelled by temporary stamp duty holiday and a so-called “race for space” as households have reconsidered their existence throughout the coronavirus pandemic.

Rightmove mentioned homes had been altering fingers faster than ever, leaving brokers with extra properties marked as offered than accessible on the market.

However, it mentioned there have been indicators that exercise ranges could also be easing off. In September, the quantity of gross sales agreed was up by 70% yr on yr, however the determine has fallen to 58% in October.

The web site mentioned that its forecast of a 2% rise in asking costs made in December 2019 now appeared “too timid” and that it was revising up its estimates for 2020 to 7%.

Rightmove’s information exhibits that asking costs have risen throughout the board however that the most important month-to-month transfer has been in what it calls “top of the ladder” properties, usually four-bedroom indifferent and bigger homes.

These properties at the moment are going available on the market for a mean of £575,594, an increase of 2% on final month’s determine. In England, the place the stamp obligation vacation applies to properties costing as much as £500,000, these are homes the place patrons will profit from £15,000 in tax financial savings.

Tim Bannister, Rightmove’s director of property information, mentioned: “Prospective patrons are seeing properties promoting quick and costs rising as they seek for their subsequent dwelling including to momentum and spurring them on to behave rapidly.

“With the number of buyers contacting agents still up by two-thirds on a year ago, there is plenty of fuel left in the tank to drive further activity in the run-up to Christmas and into next year.”

However, he warned that though many patrons appeared prepared to pay record costs, “agents are commenting that some owners’ price expectations are now getting too optimistic, and not all properties fit the must-have template that buyers are now seeking”.

Separate figures from property agency Savills additionally confirmed sturdy exercise on the prime of the housing market, with an increase in gross sales of homes costing greater than £1m.

An common of 868 £1m-plus gross sales have been agreed every week because the starting of June, 66% greater than the weekly common over the identical interval in 2019, information from Savills and company TwentyCi present.

The Cotswolds recorded a 94% in improve in offers over the interval, adopted by close by South Oxfordshire, up 78%, then Dorset, up 69%, Savills mentioned.

In London, journey restrictions appeared to have hit abroad demand for homes in upmarket neighbourhoods corresponding to Kensington and Chelsea, Westminster and Camden, which covers expensive streets alongside Regent’s Park. Sales of £1m homes in these boroughs had been down by 10% for the yr.

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Sales had been up in areas of the capital the place cash buys extra space, and as an entire the town recorded 4% extra high-end homes altering fingers than in 2019.

Lucian Cook, Savills’s head of residential analysis, mentioned: “Lifestyle relocation has been a big theme in the market since lockdown began to ease, and this is very clearly reflected in the numbers.”

Cook predicted that by the top of the yr there may have been extra £1m-plus gross sales than in 2019, “a performance nobody could have anticipated in the depths of lockdown”.

“That said, recent evidence suggests fewer high-value homes are now coming to the market, suggesting we may be hitting a high plateau,” he added.

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