House prices spiralling as demand hits 10-year high

HOUSE sellers are in their strongest position for a decade as the effects of the pandemic and government incentives push the typical asking price past £321,000, Rightmove reports.

Average values have risen by £2,484 (0.8 per cent) month-on-month, says the property website. And nearly two in three homes on estate agents’ books have been sold subject to contract.

One agent said 17 potential buyers were chasing every new home listed.

‘Concerns of a cliff edge for the housing market at the end of March have dissipated,’ said Tim Bannister, Rightmove’s director of property data.

Remote working and schooling amid the Covid crisis have prompted many people to search for new homes to suit their altered needs.

Properties with home offices – and those in rural or seaside locations – have been particularly popular.

Meanwhile, a stamp duty holiday was recently extended in the Budget and a five per cent deposit mortgage guarantee scheme will start soon.

Rightmove expects prices to increase further during the busy spring season.

Mr Bannister said: ‘Whilst it is unfortunately not the perfect time to buy for some people who have been adversely affected by the pandemic, the record buyer demand measured by Rightmove indicates now is the right time for many. Record low interest rates and the new focus on what your home needs to offer after several lockdowns have led us to the greatest excess of demand over supply in ten years.’

Marc von Grundherr, director of estate agent Benham and Reeves in London, said prices have been ‘understandably subdued’ in prime central areas of the capital. But he added: ‘We’re seeing the outer suburbs perform extremely well right now.’

Nick Leeming, chairman of JacksonStops, said new buyers are coming to the market at a faster rate than homes are being listed.

‘For those considering a sale in the next 12 months, now is certainly the time to act to ensure you can take advantage of current favourable market conditions,’ he added.