Record£ 323,530 for price of a home

PROPERTY: The average price tag on a home in Britain hit a new record high of £ 323,530 in October, according to a property website.

Asking prices were 1.1 per cent, or £ 3,534 in cash terms, higher than in September, Rightmove said. Prices are now 5.5 per cent or £ 16,818 higher than a year ago.

THE average price tag on a home in Britain hit a new record high of £ 323,530 in October, according to a property website.

Asking prices were 1.1 per cent, or £ 3,534 in cash terms, higher than in September, Rightmove said.

Prices are now 5.5 per cent or £ 16,818 higher than a year ago, the biggest increase for more than four years, it added.

Despite the economic crisis caused by Covid- 19, with the associated job losses and mortgage lenders having pulled many low deposit loans, Rightmove predicted the annual rate of price growth could peak at around seven per cent before the end of this year.

A temporary stamp duty cut introduced in July has given buyers a window of opportunity to save money on their moving costs.

But some sellers may be getting too optimistic about what people will pay, the report said.

Rightmove’s director of property data, Tim Bannister, said: “Previous records are tumbling in this extraordinary market, and there are still some legs left in the upwards march of prices.

“We predict that the annual rate of growth will peak by December

at around seven per cent higher than a year ago. Many buyers seem willing to pay record prices for properties that fit their changed post- lockdown needs, though agents are commenting that some owners’ price expectations are now getting too optimistic, and not all properties fit the ‘ must have’ template that buyers are now seeking.

“Not only is the time left to sell and legally complete before the March 31 stamp duty deadline being eaten away by the calendar, but more time is also needed because the sheer volume of sales is making it take longer for sales that have been agreed to complete the process.

“Sellers and their agents should therefore be wary of being too optimistic on their initial asking price, as whilst activity levels continue to amaze, there are some signs of momentum easing off from these unprecedented levels.”

Rightmove said that despite the closure between late March and mid- May, two per cent more sales have been agreed so far this year than in the same period in 2019.

This indicates that the recent jump in activity is not just down to demand from earlier in the year having been put on hold.

As well as the new price record, Rightmove said the average time to sell a property is at a new record of 50 days – 12 days faster than a year ago.

The number of active buyers in September was 66 per cent up on a year earlier, but slightly down on a peak of 67 per cent in July.

Rightmove also recorded a 49 per cent increase in traffic in September compared with the same period last year, which is the biggest year- on- year jump since 2006.

Hunters director Martin Robinson said: “Demand is still outweighing supply, particularly for quality properties marketed at the right price, and we’re regularly experiencing sales going to best and final offers.

“We’re also seeing changes in the habits of the consumer, with many saying that there is no need to be on the doorstep of their workplace and are looking to move to a more rural or affordable location, broadband speed permitting, to work remotely where they can get more for their money.”

Previous records are tumbling in this extraordinary market.