The UK Property Market continues its Extraordinary Growth

Rightmove’s latest report has laid out some incredible findings as the average price of property coming to market increased by 1.1% (+£3,534) this month, to an all-time national record of £323,530. This is an astonishing 5.5% higher than a year ago.

This surge has much to do with the pent-up demand in the property market during the lockdown and Rightmove forecasts that the annual rate of increase will in fact rise to 7% before year-end.

Tim bannister, Rightmove’s Director of property data, commenting on these figures said: “Many buyers seem willing to pay record prices for properties that fit their changed post-lockdown needs, though 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.

“Not only is the time left to sell and legally complete before the 31st March stamp duty deadline being eaten away by the calendar, but more time is also needed because the sheer volume of sales is making it take longer for sales that have been agreed to complete the process.

“Sellers and their agents should therefore be wary of being too optimistic on their initial asking price, as whilst activity levels continue to amaze there are some signs of momentum easing off from these unprecedented levels.”

More Sales in Less Time

Interestingly, there have been more sales agreed so far this year than in the same period in 2019 despite having an effective market closure between late March and mid-May. This statistic contradicts the argument that the increase in house sales and thus house prices are due to pent-up demand. It suggests that there is a general increase in demand, with more people coming to the market than in previous years.

Rightmove have also reported three more records on top of the new record price growth:

The average time to sell a property now stands at a mere 50 days which is 12 days faster than the same period last year.

For the first time ever, estate agents have more properties marked as sold compared to properties they have available.

The number of sales reported is an incredible 70% higher than the same period last year.

September v October Summary

National Average Asking Price
Month	Avg. asking price	Monthly charge	Annual change	Index
October 2020	£323,530	+1.1%	+5.5%	250.1
September 2020	£319,996	+0.2%	+5.0%	247.4

National Average Asking Price by Market Sector (Excluding inner London)
Sector	October	September 2020	Monthly change	Annual change
First-time buyers	£201,628	£200,324	+0.7%	+5.7%
Second-steppers	£293,341	£291,618	+0.6%	+6.1%
Top of Ladder	£575,594	£564,512	+2.0%	+5.8%

Will it continue?

There have been some signs of this growth curtailing slightly, but overall prices are expected to continue to grow into the new year. The stamp duty holiday remains in place until March 2021 and we expect buyers will continue utilising the potential tax savings.

At CityRise we believe in the consistency of property as an investment and always advise our clients that those who wait will usually miss out. Waiting until the end of this mini boom and house prices to fall might prove fruitless in the long-term. The rental market is also doing extremely well with terrific yields available in many parts of the country. If you would like to find out more about how CityRise can help you invest in property please contact us today.