According to Rightmove, the average price of properties coming to market in October has surged past last month’s all-time-record and increased by an average of 1.8% (+£5,983), as announced earlier this morning in their latest House Price Index. This is now the highest monthly percentage rise at this time of year since October 2015 and is also the first time that the market has achieved a ‘full house’ since March 2007, with all market sections and regions of the UK having hit new record-high prices in the same month. Despite the end of the Stamp Duty Holiday late last month, the demand and supply of property in the UK continues to rise.
“Competition for property for sale remains hot this autumn, with average prices jumping by almost £6,000 in the month. Although more properties are coming to market, the level is still not enough to replenish the stock that’s being snapped up. Consequently, new price records have been set across the board, with every region of Great Britain and all of the three market sectors of first-time buyer, second stepper and top of the ladder hitting all-time highs. This ‘full house’ is an extremely rare event, happening for the first time since March 2007. The stock shortages started after the first lockdown, and they look set to continue with the underlying housing market fundamentals remaining strong, and an additional incentive to buy and fix your mortgage interest rate before a widely expected rate rise. Mortgage interest rates are lower than they have ever been before and lenders are keen to lend in a competitive market, with employment and wage growth also robust. The number of sales agreed continue to be strong despite the end of the stamp duty incentives.” Tim Bannister, Rightmove’s Director of Property Data.
The number of agreed sales last month increased by 15.2% compared to the same period pre-pandemic, and the high level of demand is preventing supply from recovering, as the available stock in the market continues to be depleted. The continuing imbalance between demand and supply continues to provide record prices in the property market and presents the opportunity for those wishing to sell and buy again before the likely interest rate rise, speculated to increase as the Bank of England seeks to control inflation.
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