The average house price in the UK has reached a new all-time high as the price of properties coming onto the market continues to soar. The standard cost of a home across the country now sits at £360,101 after prices climbed for the third consecutive month with an increase of more than £19,000.
This is the largest growth ever seen in any three-month period since records began, according to Rightmove, who say that continuous buyer demand is enabling sellers to ask and achieve higher prices. With not enough properties available on the market, sellers are able to find a buyer 'quicker than ever' previously seen by Rightmove and twice as quickly compared to the market in 2019.
Despite the cost of living crisis we are currently facing and in comparison to the stamp duty holiday period we've previously seen, the housing 2022 market continues to set new milestones for price and activity levels.
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Across all regions and markets in the UK, average house prices have reached record highs and it is only the second time since 2007 that Rightmove has measured such an event. Around 53% of properties coming onto the market are selling at or over the asking price.
Tim Bannister, Rightmove’s Director of Property Data said: “With three new monthly price records in a row, 2022 has started with price-rise momentum even greater than during the stamp-duty-holiday-fuelled market of last year.
"While growing affordability constraints mean that this momentum is not sustainable for the longer term, the high demand from a large number of buyers chasing too few properties for sale has led to a spring price frenzy, a hat-trick of record price months, and the largest price increase for a three-month period Rightmove has ever recorded.
"The strong momentum has carried over from last year and, combined with the impetus of the spring moving season, has delivered the quickest selling market we’ve ever seen. The high speed of the market and competition among buyers when making an onward move will be deterring some owners from putting their homes up for sale.
"However, if you can secure both a quick sale and a quick purchase then it’s a lot less stressful than the uncertainties of a slower market when finding a buyer for your own home can drag on for months or not happen at all. Over 125,000 new sellers have taken advantage of the great sellers’ market this month, but more are needed in all areas and in all property sectors to meet high buyer demand.”
Find out what the average house price is where you live in Greater Manchester
At this time in 2019, the average time to sell a home was 67 days whereas now it is taking on average 33 days for a property to sell on Rightmove. Some popular properties are sold within days while others that are less desirable may still take months.
Tim Bannister does however say that the pace of price rises appears to be tailing off a little, with this month’s increase of 1.6% being lower than the previous two months.
"The economic headwinds of strongly rising inflation and modestly rising interest rates are being kept at bay by the even stronger tailwind of property market momentum that has carried over from last year," he said.
"2021 saw four consecutive monthly price records from April through to July and I would not bet against that being bettered this year as we are already at three consecutive records in April.
"There are some early signs of an easing off from the frenetic pace of price rises, and buyer enquiries to agents are down by 16% on last year’s stamp-duty frenzy. However incredibly, buyer enquiries are still 65% above the more normal market of 2019 and the number of sales agreed is up 21%."
Tim added: "While there is growing economic uncertainty, our current market statistics show there is greater certainty that your property will sell more quickly than ever before, and likely at a record price.
"It can’t and won’t continue like this, but with the demand and supply imbalance being so out of kilter, it looks like any substantial slowdown will be gradual in coming and be a soft rather than hard landing.
"It seems likely that the supply/demand mismatch will remain for at least the rest of this year. Even with some economic uncertainty, where you live and your home is such a fundamental decision for people that it will remain a priority for many.”
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