The price of property coming to market has risen by 2.3% this month (+£7,785) to a record £348,804, the biggest monthly jump recorded by Rightmove in more than 20 years. The property website says that prices are now 9.5% higher than a year ago, the highest annual rate of growth seen since September 2014.
This month’s house price index shows signs that both buyers and sellers are acting quickly amidst fears that they may miss out in the current competitive market. The number of potential buyers sending enquiries to agents has risen by 16% compared with this time last year, and new property listings have increased by 11%.
London has recorded the biggest annual jump in regional buyer enquiries, and the highest annual rate of price growth since 2016, as the end of pandemic restrictions and a return to the office fuel renewed demand in the capital.
February has picked up where January left off, and as the second month of the year proves to be even stronger than the first. February normally sees a rise in asking prices from January, but this is the biggest monthly jump in cash terms recorded by Rightmove in more than 20 years of reporting. This new record means that average asking prices have now risen by nearly £40,000 in the two years since the pandemic started, compared to just over £9,000 in the previous two years.
The pandemic continues to influence many home moves, with this month’s price growth driven primarily by the “second stepper” sector – those who may find themselves in need of more space and are now ready to move on from their first homes.
Tim Bannister, Rightmove’s Director of Property Data comments:
“The data suggests that people are by no means done with their pandemic-driven moves. Such a significant societal event means that even two years on from the start of the pandemic, people are continuing to re-consider their priorities and where they want to live. As the final legal restrictions look to be ending soon, and more businesses are encouraging a return to the office for at least part of the week, we now have a group of movers who are looking to return closer to major cities, or at least within comfortable commuting distance of their workplaces.
High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month. The rising cost of living is undoubtedly affecting many people’s finances, especially those trying to save up enough for a deposit to get on the ladder or to trade up. However, despite rising costs and rising interest rates, the data right now shows demand rising across the whole of Great Britain, with many people determined to move as we head into the spring home-moving season.”
While there is still a mismatch between buyer demand and the supply of available homes, the early signs of a better-balanced market that were reported at the end of 2021 are now starting to come to fruition. The number of new sellers listing their homes for sale is up by 11% compared to this time last year.
This increased activity is therefore indicative of the expected market over the coming months, as data from Rightmove shows that March is historically the strongest time to sell.
Bannister says:
“It seems that the fast-moving market has really hit home for sellers this month, with a number of those who are also buyers putting themselves in the best position to secure their dream home by becoming a ‘power buyer’ and getting their own home on the market first. This in turn is driving a rise in new listings compared to last year, giving the existing pool of buyers some fresh choice. A fear of missing out on one’s dream home is really driving market behaviour at the moment, as movers look to do all that they can to avoid the disappointment of being too slow to secure their ideal property.
We’re seeing buyers sending more enquiries for available homes than usual, and doing everything that they can to put themselves at the top of the list. Setting up instant property alerts, keeping a keen eye on fresh property stock coming to market each day, and acting immediately rather than waiting are other tactics that some successful buyers are using. Those would-be sellers who are considering coming to market in the near future will be pleased to hear that March is historically the best time to sell, with sellers normally seeing the most enquiries for their property, and therefore the best chance of a successful sale.”
