House prices across the UK have increased to record highs as sellers can expect ‘best ever spring market’. According to Rightmove's House Price Index, the average price of a property coming onto the market has broken the £350,000 barrier for the first time.
The national average price for a property on the market has reached £354,564, which has pushed the annual rate of increase to 10.4 per cent. An imbalance between buying demand and the number of properties for sale is one of the key factors causing the price surge, Rightmove has said.
There are more than twice as many buyers as sellers, with the chances of sellers finding a buyer in the first week at its highest ever. Nationally it took on average 36 days to secure a buyer in February 2022, down from 60 days in February last year.
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Average house prices in the North West have increased by 1.3 per cent on the month to £239,312, with a yearly increase of 11.7 per cent. On average it takes around 36 to sell a property in the region.
In comparison, London’s average house prices decreased by 0.4 per cent on the month to £664,400, a yearly change of 6.3 per cent. Houses in the capital take on average 57 days to sell.
But it’s not yet known how the longer term economic impact of the war in Ukraine will affect the property market. Agents also expect the market to balance out in the second half of the year, although demand is expected to still outstrip supply.
Tim Bannister, Rightmove’s Director of Property Data comments: “There’s a hat-trick of reasons for home-owners to follow the normal trend and make it their goal to sell this spring. Firstly, the potential to achieve a record price for their property.
“Secondly, the imbalance between high buyer demand compared to low available property supply is the greatest that we have ever seen for the start of a spring market, meaning that the chance of being able to pick and choose between several suitable buyers is strong.
“Thirdly, the proportion of properties finding a buyer within the first week is also at an all-time high for this time of year, so sellers with an appropriately priced and well-presented property can expect a shorter marketing period than the norm. Those who weren’t ready to take advantage of last year’s rush now have another chance to get on the market while these conditions last.”
According to Rightmove, the largest monthly price increase has been recorded in the “top of the ladder” sector, predominantly comprising four bedroom or more properties. This has seen a 3.8 per cent (+£23,619) jump due to high demand and the greatest scarcity of supply, though encouragingly for prospective buyers in this sector 12 per cent more properties have come to market in the last month compared to the same period a year ago.
However, they report that the more mass-market “second-stepper” properties are selling fastest, with just over half (50.3 per cent) of these homes finding a buyer within the first two weeks of marketing.
In the second half of the year buyers and sellers can expect the property market to balance out again, especially as the country braces itself for the cost of living to increase.
Mr Bannister added: “ All sectors of the market are experiencing very brisk conditions and we expect the strong market to continue until economic forces combine to move the supply and demand balance closer towards equilibrium. There are headwinds that seem likely to remove the current market froth in the second half of the year.
“We’ve just seen interest rates rise again, and there are further incremental increases forecast for the year which will raise mortgage rates for some. Inflation and cost of living increases are also likely to affect buyer affordability and market sentiment. ”
The market has also seen an increase in buyers looking for larger homes as workers plan to work from home more frequently, while people also look to move to towns and villages if they no longer need to commute full time.
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