According to new figures just released by Rightmove, the average price of a home in the UK rose by 1.8% over the last month. The property website revealed the figures as part of their latest House Price Index report.
The research revealed that the average price of a home in the UK is now £333,564 – but this figure represents the whole of the UK and there are of course, great differences in price, depending on where you want to live in the country.
London properties remain at the top of the list and are much more pricey that the rest of the nation. However Rightmove says that the ratio of price difference between London properties and the rest of the UK has now narrowed to its smallest difference since 2013. The region that saw the greatest increase in price was Wales – where the average price of a home rose by 13%.
Talking to Property Wire about the figures, managing director of Barrows and Forrester, James Forrester, said that the rise in house prices was ‘alarming’ and that they were probably being driven by ‘several factors’:
“Buyer demand remains extremely high and an appetite for larger homes is driving market activity. However, a lack of suitable stock to satisfy this demand is causing many to dig deep in order to offer above the odds and secure their desired purchase.”
“At the same time, savvy sellers are realising that buyers are not only entering the market with a budget boosted by the stamp duty holiday, but they’re doing so amidst an air of panic with the deadline fast approaching. Therefore, many are pricing far higher than the market value of their home to take advantage of this desperation. While they will inevitably reduce this expectation during the offers stage, this additional wiggle room still enables them to secure a higher price than they may have otherwise.”
Also speaking to Property Wire, the founder and managing director of Yes Homebuyers, Matthew Cooper, had a stronger opinion about the findings:
“It’s clear that sellers are attempting to cash in on the stamp duty holiday themselves by reaching new highs where unrealistic asking price expectations are concerned. In doing so they’re also crushing the hopes and dreams of many would-be first-time buyers who will now find themselves well and truly priced out of the market.”
“Those hard-pressed to reach the first rung of the housing ladder may well have the last laugh though, as an already weary market continues to overheat. When the end of the stamp duty holiday does come and causes buyer demand to evaporate, we’re likely to see property values fall at pace.”
So, potentially not all good news for homebuyers – but if you are in the process of buying and selling and you’re ready to make your move, get in touch with us today for a free, no-obligation quote. If you’re thinking of downsizing we have secure, stone-built storage facilities right here in the centre of Bridport. We can help you to pack your things and put them straight into storage for you until you’re ready to deal with them, taking all the stress out of moving for you. Give us a call to find out more.