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House price latest and what will happen next?

Update: Average prices in 2021 are 4.5% higher than at the end of 2020.

September offers fierce competition between buyers and highest ever house prices...

Months of sky-rocketing buyer activity have driven the average asking price for a home in Britain to a new high. According to Rightmove's September House Price Index, the national average asking prices of newly marketed properties have risen by 0.3% (+£1,091) this month to hit a new all-time high of £338,462.

Despite the usual summer holiday lull, fierce competition continues among buyers for the record low stock available. Buyer demand is continuing to rise - more than double that of pre-pandemic levels. There are signs of more properties coming to market over the Autumn season which will offer more choices for buyers in the coming months. First-time buyers with a mortgage agreed, or those buyers who have sold their properties are in the best position to buy.

This is fantastic news for those of you looking to sell. Although there’s huge buyer demand, currently the number of properties coming to market are still scarce. The current record lows in available stock for sale means that if you list today, your property could be seen by far more buyers than usual. The lack of stock for sale also means buyers could enter into what’s known as a bidding war for the same property, driving prices up further. 

What’s happening to house prices in my area? 

Across the UK there are varying levels of demand. Right now, affordable homes (under £250,000) are in high demand; the average price of a home in Wales is up 9.4% from 12 months ago. In the Northwest of England, property values climbed 6.8%, whilst in the East Midlands, they rose 9.1%. Comparatively, London has seen a more modest growth of just 0.8%.* If you're serious about selling, it may be worth booking in with one of our experts who can value your property, safely and easily.

Is your home in a property hotspot?

Buyers offered a wider choice but the market still favour sellers

There were promising signs for buyers last month with a 14% increase in new sellers listing their properties. This is an encouraging sign that the market is returning to 'normal', particularly as Autumn usually sees a rise in listings as people plan to move home in time for Christmas. Despite this, sellers are still in a favourable position often choosing from a number of bidders. To be successful, buyers must do what they can to be attractive particularly when it comes to minimising the potential for delays. Many of our agents are reporting the use of tactics such as ‘sell before you buy' being very successful. If you're unsure which approach is best to take speak with an agent for advice. 

A return to 'normal' amplifies demand

With millions of Britons returning to their respective workplaces there is likely to be a continued desire for homes as people adapt their lifestyles accordingly. Many experts are predicting activity levels will remain high for the foreseeable future. Zoopla recently reported that UK city house prices had risen 6% with a particularly notable rise in London and the suburbs around the capital - a rise of 2.5%.

What's happening in the rental market? 

There is a similar trend emerging in the rental market as a general demand for rental homes is notable in and around major cities. After falling into negative territory at the start of 2021, rental growth is now back into positive territory in Manchester, Leeds and Edinburgh. In fact, the rental market is moving at the fastest rate since 2016, with an average time to rent now just 15 days across the UK with rental growth outside London hitting a 13-year high. 

Final thought...

As we head into the autumn, the housing market is still very active across both the sales and rental sectors. If you're considering selling, this is a great time to come to market not only as there are plenty of buyers but also an increasing number of homes available to buy. Experts predict that house prices will rise between 4% and 6% a year between 2022 and 2024. The boom in demand for second homes, which started in 2020 in line with travel restrictions, shows no signs of slowing down.

Similarly, the market for lettings and increase in rental prices offers huge opportunity not only for existing landlords but anybody considering buy-to-let.

To find out how much your home is worth try our FREE valuation service. All we need is your postcode and a minute of your time. 

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https://advantage.zpg.co.uk/house-price-index-report/ August 2021

https://www.rightmove.co.uk/news/house-price-index/ September 2021