April 2021 saw property prices in the UK reach an all-time high, setting new records in the wake of the stamp duty holiday extension. However, just one month later, the UK property market has set a new record, with property prices rising 1.8% on the previous month.
May has hit a new national record in property prices, with an increase of +£5,767 on the previous all-time-high, recorded last month. With April’s average asking price for properties reaching a record £327,797, this figure has now hit the £333,564 mark, averaging at a third of a million pounds. Demand for properties to purchase in the UK continues to massively exceed supply, especially in the Northern regions, as buyer demand soars throughout the country.
Prospective buyers are continuing to face record-high prices on properties for sale across the entire UK, with prices in the North West increasing by +11.1% and in the Yorkshire & Humber rising by +10.5%; whilst London remains at a virtual standstill, with prices only rising by +0.2% over the last 15 months. Compared to the staggering double-digit increase in the North over the same period, London’s property market continues to stagnate in comparison – with average property prices still 2.9 times higher than the North, but with seemingly little-to-no potential for capital growth for investors.
“The pandemic has changed many aspects of what people want from their homes, and the pricing pendulum is swinging away from London and towards the North.”
Tim Bannister, Rightmove’s Director of Property Data.
Rightmove’s latest research amongst buyers and sellers in the UK shows that over the next 12 months, 84% of buyers in the North are looking to move locally and stay in the region, compared to only 52% of buyers in London looking to stay within the capital. As many Londoners are looking to flee the city, most sellers in the North intend to buy and stay local; increasing buyer demand in the region and speeding up the average time to sell property, currently standing at an average of just 45 days across the nation.
With property agents inundated with buyer demand, many are now predicting that the continuous property boom – credited to the stamp duty holiday – will continue long after the holiday deadline has been reached, with prices likely to rise throughout the rest of 2021 and beyond.
If you are interested in investing in the UK property market and benefitting from the staggering increases in capital growth, then get in touch with us today. Our team of expert property consultants are here to help you capitalise on all the UK market has to offer.