THE average price of a property coming onto the market has reached a record high of £294,351 according to Rightmove this month.The previous record was in April at £286,133.
This price surge has been boosted by an uplift in the post-election buyer demand, shortage of properties coming onto the market and an undeniable lack of affordable new homes for first-time buyers.
Rightmove reported its busiest ever May with its website hitting 115 million visits.
However, despite the election outcome helping to fuel buyer demand, the anticipated rise in new sellers has failed to materialise with a tighter supply of new properties coming onto the market (Rightmove reported a decrease of 8.5% on the same period as last year) again, further fuelling the price surge with buyer demand continuing to outstrip supply.
There is some light at the end of the tunnel for many ‘second steppers’ who are now finding that they are no longer trapped in negative equity as their own position is boosted by the house price increases with the abundance of first-time and investment buyers.
This also comes as good news for the housing market as these sellers have been living in homes that first-time buyers demand but prior to the economic upturn were locked in and unable to move due to little or no equity.
They are now able to trade up, bridging the gap between first-time buyers and those further up the housing ladder, with the hope that this should help keep the market moving.
Latest Homelet rental index figures show rents are up across the whole of the UK by 10.7%, higher than the same time last year.
In Greater London the average monthly rent on the three months up to May stood at £1,472 and the average monthly rent on new tenancies signed in May was even higher at £1,506.
This monthly average has exceeded £1,500 for the first time in the history of the index.
Whether you are selling or letting make sure you use an agent who knows the market.
Call Lakin & Co today or pop into the branch to discuss how they can help you achieve the most from the market.