Sellers’ prices hit new heights

Price tag on new homes at 14-year-high across UK, writes Vicky Shaw

The average price tag on a home has hit a new high in all nations or regions of Britain and in all market sectors for the first time since 2007, according to a property website.

Across Britain, the average asking price jumped by 1.8% or £5,983 in October, Rightmove said, to reach £344,445.

For the first time since March 2007, new price records were hit across the board – both when it came to the three different types of properties that Rightmove analyses as well as across all nations and regions of Britain.

Looking at the three different property types, the average price tag on a first-time buyer home hit £210,672, the average price being asked for a property typically bought by someone taking their second step on the property ladder reached £315,486, and the typical price tag on a larger family-sized home typically bought at the top of the property ladder was £630,819.

Tim Bannister, Rightmove’s director of property data, said: “Competition for property for sale remains hot this autumn, with average prices jumping by almost £6,000 in the month.

“Although more properties are coming to market, the level is still not enough to replenish the stock that’s being snapped up.

“Consequently, new price records have been set across the board, with every region of Great Britain and all of the three market sectors of first-time buyer, second stepper and top of the ladder hitting all-time highs.

“This ‘full house’ is an extremely rare event, happening for the first time since March 2007.”

Mr Bannister said stock shortages were seen after the first coronavirus lockdown last year and look set to continue.

The number of sales being agreed was up by 15.2% in September compared to the same period in 2019, Rightmove said.

A continuing imbalance, with demand outstripping supply and leading to record prices, presents an opportunity for owners looking to sell and cash out if they are downsizing or not needing to buy another property, it added.

Mark Ross, managing director of estate agent Redbrik said: “Stock shortages continue to drive prices upwards, though accurate pricing rather than over-pricing is very important to get prospective buyers through the door.

“We expect prices to continue to rise, albeit at a steadier pace. This should give buyers and sellers more confidence to come to the market as they better understand the less frantic conditions.”

Nick Menzies, area partner for the Robinson Jackson Group, said: “If you don’t already have a sale agreed on your property, the level of current buyer activity means it’s likely that ‘the one’ for you has already had a lot of interest from buyers who may be in a better position to proceed quickly.”

Cory Askew, head of sales at Chestertons, said: “Despite the stamp duty tax free threshold (in England and Northern Ireland) having returned to its normal level on October 1, the demand from house hunters hasn’t slowed down.

“London is seeing a return of office workers and steady influx of international buyers. Sellers have taken note of this and, with a higher demand for properties, don’t feel the need to lower their asking price.”

Nick Barnes, head of research at Chestertons, added: “The market has been heavily boosted by the stamp duty holiday whilst the pandemic has led to record demand from buyers, in particular for larger properties.

“The end of the stamp duty holiday and the Government’s furlough scheme will act as a break on buyer demand which will limit price growth going forward.”