Asking prices hit record high for third month in a row, says Rightmove

Home sellers’ asking costs have hit a report excessive for the third month in a row, based on an internet site.

The value of property coming to the market elevated by 0.8%, or £2,509, on common in June, pushing the everyday price ticket throughout Britain to a brand new report excessive of £336,073, based on Rightmove

It mentioned asking costs throughout all areas and nations of Britain have hit new information.

That is regardless of Workplace for Nationwide Statistics (ONS) figures final week exhibiting the typical UK home worth fell by £5,000 in April after reaching a report excessive in March – the month when a stamp responsibility vacation was initially because of finish.

The ONS home worth index is much less well timed than Rightmove’s knowledge as it’s based mostly on accomplished gross sales on the finish of the conveyancing course of, slightly than the costs that sellers need to obtain.

Rightmove mentioned the 0.8% enhance in asking costs recorded in June is smaller than rises of 1.8% in Could or 2.1% in April – indicating an early signal of a slowing within the tempo of the present hectic market.

However the newest enhance continues to be the most important rise for this time of yr since 2015, buoyed by the power of the highest finish of the housing market and residential movers seeking to change their existence, the report added.

Tim Bannister, Rightmove’s director of property knowledge, mentioned: “Document low rates of interest and stamp responsibility tax reliefs have helped many to afford larger costs, satisfying their pent-up wishes for a brand new residence match for a brand new period.

“A few of that demand has now been met, and the phasing out of stamp responsibility reliefs has additionally taken away a few of the urgency to maneuver, although our excessive visitors and search knowledge point out that there’s nonetheless sturdy purchaser demand.

“Nonetheless, larger costs mixed with a scarcity of contemporary selection coming to market are lowering some consumers’ capacity or need to maneuver, and whereas we count on the market to stay strong, there are early indicators of a slackening within the unbelievable tempo of exercise that we’ve seen over the past yr.

“This super-charged exercise can’t go on eternally, however we count on the market to stay vigorous for at the least the rest of the yr.”

In indicators that some steam could also be popping out of the market, the variety of gross sales agreed by property brokers in Could was 17% forward of the comparable interval of 2019, a slackening of the tempo recorded in April when gross sales agreed had been 45% larger than in April 2019.

The typical variety of properties obtainable on the market per property company department stands at simply 17, falling even farther from the report low of 19 within the earlier month, Rightmove added.

Demand is especially excessive for “high of the ladder” indifferent properties with 4 bedrooms or extra.

The variety of gross sales agreed for properties priced over £500,000 was up by 49% in Could in contrast with Could 2019.

The housing market as an entire has seen a median worth rise of seven.5% since March 2020, or £23,448.

However common costs for high of the ladder properties have elevated by £67,394, or 12.3%, throughout this era.

Costs of newly marketed properties in Wales are up by 14.6% since March 2020 – the largest rise in Britain, Rightmove mentioned. The second largest worth rise is within the South West the place worth tags are up by 11.4%.

Mr Bannister continued: “Common costs in Wales are effectively under the nationwide common, providing good worth in addition to lovely rural and coastal environment.

“Purchaser demand is up by 44% in comparison with a yr in the past, the best enhance of any a part of Britain. The South West has been long-established as a second residence hotspot, however has seen renewed impetus from fundamental residence relocators being unshackled from the standard areas for his or her each day commute.

“This unprecedented demand has resulted within the lowest ever variety of obtainable properties per property company department for any area within the nation, down to only 10 in comparison with the nationwide common of 17.

“Some brokers say that they’re just about offered out. It additionally has the quickest charge of sale in England for the primary time ever, as demand from outsiders and native movers mix to make it the most well liked promoting area, with 28% of properties promoting inside per week of promoting on Rightmove.”

Matt Barry, director at Astleys property brokers in Swansea, mentioned: “We’re now commonly receiving presents from a number of consumers per property. This usually ends in us requesting finest and ultimate presents and houses promoting for a lot in extra of the unique asking worth.”

Nick Leeming, chairman of Jackson-Stops, mentioned: “There have been 18 consumers chasing each itemizing throughout our branches within the South West final month as cities and villages which had been as soon as out of attain to five-day-a-week commuters now current sensible choices for hybrid or distant staff.

“Moreover, London’s prime commuter belt cities proceed to carry out extraordinarily effectively worth sensible, together with Sevenoaks, Reigate, Dorking and Cranbrook, as many consumers proceed to hunt alternatives for extra spacious lodging and a bigger slice of outside house.”