Yorkshire tops the table of asking price rises
The latest Home.co.uk’s Asking Price Index for July shows that seller confidence is greatest in Yorkshire, which exhibited what it describes as “extraordinary confidence” with an increase in the average home price of 2.7 per cent over the past month.
The North West had the second biggest month-on-month rise with 1.9 per cent. The national average is 1.5 per cent and is the largest monthly increase in asking prices since February 2014
Yorkshire also had the highest year-on-year growth in asking prices with a five per cent increase, followed by the North West with 5.1 per cent, both of which surpass monetary inflation.
The average asking price in Yorkshire is now £213,212, making it the second lowest in England. The North East is more affordable with an average asking price of £165,331. The most expensive is London with an average asking price of £526,069.
The East of England remains the UK’s worst-performing region with the year-on-year change in average asking price just in the red at -0.4 per cent.
Home.co.uk say the figures confirm that considerable strength remains in the Yorkshire and North West housing markets, which were “hot” before lockdown and also reflects the bullishness of sellers nationwide who will be further encouraged by the Stamp Duty holiday.
Overall, the number of new instructions in the UK during June was just nine per cent below that of June 2019 and Greater London vendors added four per cent more stock than a year ago.
Supply in the rental sector across the UK continues to recover but remains 6.2 per cent down year-on-year.
Doug Shephard, Director at Home.co.uk, says: “During economic uncertainty, investors seek the security of bricks and mortar and the lower risk returns that the rental market affords. Hence, we shouldn’t be too surprised about the renewed vigour that the market is currently displaying.
“Moreover, given the additional tailwind of the newly announced Stamp Duty holiday, we can expect the current wave of demand to be sustained, at least in the short term.
“Property investors as well as homebuyers look set to return to the market amidst such favourable conditions and this will have two key effects. “Firstly, the additional demand will push up prices and secondly, supply in the rental market will increase. The latter will be good news for renters as increased supply will help attenuate rent rises and improve choice.”
According to Rightmove, average asking rents outside London in the second quarter of the year hit a record of £845 per month, up 3.4 per cent on the same time last year.
The highest rise was in Scotland, where rents have risen by 10.1 per cent and lowest in Greater London, which saw a fall of 0.6 per cent. Yorkshire rents rose by 5.3 per cent year-on-year.
Agents have recorded record demand and enquiries hit a new all-time high on Monday, July 6. Demand is now 40 per cent higher than this time last year.
A survey among landlords has found that despite growing concern over risks of greater rent arrears, a quarter of them are still planning to increase the number of buy-to-let properties they own.
Rightmove’s Commercial Director and market analyst Miles Shipside says: “It isn’t good news for many tenants looking to move right now, especially as there will be even more competition for attractive properties.”