Record prices and why off-market sales have soared
Average UK house prices have risen by 74 per cent or £123,016 over the last 10 years, according to the Halifax.
However, its latest monthly index shows that property price inflation is slowing with a one per cent rise recorded last month, signalling an end to the unprecedented boom sparked by the pandemic.
Annual price growth in Yorkshire is now 9.5 per cent, taking the value of the average home to £200,469.
While residential property values have rocketed in our region, it remains the second cheapest place to buy a home in England.
The least expensive is the North East where the average house price is £166,449.
Russell Galley, managing director Halifax, says: “The average cost of buying a home in the UK has now risen for 11 consecutive months.
“Annual UK growth also remains in double digits, at 10.5 per cent, although this is the slowest rate of growth seen since the start of the year.
“The average cost to buy a home in the UK is now £289,099, hitting yet another record high.”
He adds that despite the cost of living pressures, the imbalance between supply and demand for properties remains the primary reason driving the continued climb in house prices.
For house hunters, the extent of the impact of property price inflation continues to be linked to the type of home they are looking to buy. Compared to May last year, you’d need around £10,000 more to buy a flat, but an additional £50,000 for a detached home.
Mr Galley says:“This clearly creates a knock-on effect for those looking to make their first home move, as the rungs on the housing ladder have become increasingly wider.
“However, the housing market has begun to show signs of cooling. Mortgage activity has started to come down and, coupled with the inflationary pressures currently exerted on household budgets, it’s likely activity will start to slow.
“So, there is perhaps one green shoot for prospective purchasers; with overall buying demand down compared to last year, we may be past the peak sellers market.”
Over the past decade, the greatest price growth has been in London. Those home hunting in the capital now need £247,638 more than those looking ten years ago.
Over at Hamptons, head of research Alison Blease reports that a rise in the number of off-market sales, i.e. properties that are on an estate agent’s books but are not advertised for sale, has primarily been driven by growth in non-prime markets which have traditionally seen limited offmarket activity.
She adds that buyers are increasingly willing to pay a premium for a home before it hits the property portals, to fend off the competition.
Off-market sellers achieved record prices on the back of buyers looking to secure deals in stock-starved areas.
Hamptons say that during the first five months of the year a record 23 per cent of London homes changed hands without being openly marketed and 24 per cent of property in prime country areas was sold discreetly.
Nationally, around one in ten homes sold this year found a buyer without being publicly marketed.
However, Hamptons say this strategy only works if you have a sought-after property and with the number of homes on the market forecast to rise later in the year, buyers are unlikely to pay a premium for off market property.