The latest Rightmove figures have been released, showing asking prices for homes have risen yet again across Britain. The new average asking price is £333,564, an increase of 1.8% in only one month.
In the north of England, demand has risen sharply and overtaken supply, as larger homes become more sought after. There was a 13% increase in asking prices in Wales since March of 2020, followed by 11% in the North West and 10% in Yorkshire & the Humber.
Although average prices remain higher in London, they have only risen by 0.2% since the start of the pandemic according to Rightmove.
Tim Bannister, Rightmove’s director of property data, said: ‘Last year’s unexpected mini-boom is rolling on into 2021, with new price and market activity records again defying many predictions,’
And added: ‘It is the regions of Britain further north that are leading the way, with some degree of catching up between average prices in London and the north.
‘The pandemic has given a greater focus on the home, and in 2020 we saw a surge in southern coastal and rural areas.
‘So far 2021 is proving to be the year of the northern mover, not only satisfying their pent-up housing needs, but in doing so also narrowing some of the huge price gap with London.’
Tomer Aboody, director of property lender MT Finance, added: ‘Londoners who have always craved city life are now less fussy about being at the centre of things and are willing to compromise on location in order to find that elusive space.
‘This, in turn, is pushing asking prices up in other regions at the fastest pace in years, exceeding London in terms of percentage increase in values.
‘Although prices are still much lower in the regions than in London, those averages are rising as demand shifts outwards.’
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: ‘These figures confirm what we’ve seen ‘at the sharp end’. Some sellers have taken the opportunity to raise asking prices, making home buying less accessible even for those able to purchase the dwindling stock of properties.
‘On the other hand, we’re finding faster rollout of the second jab, in particular, is helping to encourage older homeowners to put their homes on the market but not fast enough yet to keep prices in check.
‘We expect the imminent tapering of the stamp duty concession to prompt a reduction in activity and softening rather than a correction in prices as longer-term market sustainability is driven by economic recovery and availability of competitively-priced finance.’
Original article featured here…
Last month, Rightmove released its house price index, showing the average price of a house going on the market was at £327,797, which was £4,000 over the record set in October of 2020.