Rightmove have released their latest findings on the UK property market, showing a 7.6% increase in the average property price on an annual basis in January. Since December last year, house prices have risen by 0.3%, now at an average of £341,019. The last time a growth rate of this magnitude was seen was May 2016.
The data showed an escalation of 6.8% in house prices on an annual basis for first-time buyers, 1.4% monthly, which brings the average house price to £214,176 for those entering the property market for the first time.
Illustrating the current gap between supply and demand, the figures also show an all-time low of just 12 houses for sale per estate agent branch, compared to a rise in buyer enquiries of 15% annually. Valuation requests in January had increased by 48% since January of 2020.
Rightmove director of property data Tim Bannister comments: “People who have made it their New Year’s resolution to move are finding asking prices are within just one per cent of the record from October last year, and are at the highest level ever recorded for FTB type homes.
“All of the signs suggest that prices are likely to continue to rise until more choice is available. Three regions are in most urgent need of new supply, the East Midlands, South West and South East of England, as they are now at unsustainable rates of annual price growth above 10%.”
And MT Finance director Tomer Aboody says: “With such a lack of supply of good properties on the market, combined with plenty of cheap mortgages, buyers are pushing themselves to make sure they don’t miss out and asking prices continue to rise as sellers take advantage. If that means having to pay more for a home, then many buyers are prepared to do so.
“With inflation continuing to rise and higher mortgage rates likely at some point, this situation is unlikely to change in the short term if the supply situation does not improve. It remains to be seen what will happen as something approaching ’normality’ returns and things settle down.”
Original article featured here…
MT Finance recently appointed their first non-executive director, Chris Patrick, to assist with MT Finance’s growth plans, focusing on funding strategy, ESG initiatives and technology.