The average price tag on a home in the UK hit a record level this month and topped £350,000 for the first time, according to Rightmove. Houses which have four bedrooms or more are reportedly having the largest jump in prices with the average increase being £23,619 due to high demand and scarcity of supply.
Annual price growth was above 10% for all regions and countries except London and Scotland, which is the highest recorded since 2014. Halifax state that this was the eighth successive month of house price growth.
Its likely many are in a rush to buy now before mortgages rate increase further, as we have seen interest rates rise and there are further rises forecast for the year. The surging prices for oil and gas prices have meant that inflation in the UK is already at a 30 year peak and will remain higher for longer, this is also likely to have an effect on increasing house prices.
The level of buyer demand has created “beneficial conditions for sellers” and, as a result, the number of homeowners willing to lower their asking price has dropped by 44%. At the same time, the number of available properties for sale has fallen by 8% compared to January 2021.
However, Director of property data at Rightmove, Tim Bannister made the point that “many of those who are selling in this record-breaking market also face the prospect of buying again in the same market, and being in fierce competition against other buyers.”
Rightmove have said that the prices have primarily been fuelled by the biggest disparity between buyer demand and supply ever recorded. In London, there are twice as many buyers as sellers, those looking to purchase a house will be looking at ‘bidding wars’ in 2022 as the property market becomes ‘hyper competitive’.
Fraser and Fraser offer support in bring old homes back into use; we specialise in tracing owners or their next-of-kin to properties that are vacant, occupied illegally or falling into disrepair with no charge to the council. We also assist in bringing the property to a standard where it can be utilised in order to sell on, which can help increase supply of houses in the UK.
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