Yorkshire Post

House prices hit new record high

- PAUL JEEVES HEAD OF NEWS Email: paul.jeeves@jpimedia.co.uk Twitter: @jeeves_paul

The average cost of a home has jumped to a new record high for the fourth month in a row as concerns mount over the escalating affordable housing crisis.

Figures published today by Rightmove reveal that the average price of a home reached £338,447 in July, £21,389 higher than it was just six months ago.

THE average cost of a home has jumped to a new record high for the fourth month in a row as concerns mount over the escalating affordable housing crisis.

Figures published today by the Rightmove property website reveal that the average price of a home reached £338,447 in July, £21,389 higher than it was just six months ago.

Officials from Rightmove said the first half of this year was the busiest that the website has ever recorded, as demand for housing continues to soar.

However, there are concerns that many are being priced out of the property market, and The Yorkshire Post revealed last month that the cost of a home is 10 times the average wage in the most expensive districts in the region.

Rightmove said that with the first half of 2021 seeing 140,000 more sales being agreed and 85,000 fewer new listings than the long-term average, the surge in activity has triggered a shortfall of 225,000 homes for sale.

The average number of available properties for sale per estate agency branch is at a new record low of 16, compared with a longer-term average for this time of year of 31, according to the website.

Rightmove’s director of property data, Tim Bannister, said: “First-time buyers are currently benefittin­g from their sector having the most buyer-friendly conditions.

“Choice is still more limited when compared to the same period in 2019, but price rises are the most subdued of any sector.

“Saving a deposit is still very hard, but five per cent is now an option, and, with many paying rising rents, buying your own home on a lower deposit is becoming an opportunit­y again.”

The stamp duty holiday has helped to push up demand. The holiday in England and Northern Ireland was tapered from the start of July and will end in the autumn.

Rightmove said detached homes with four bedrooms or more are facing the biggest imbalances in terms of demand versus supply. These have seen a surge of 39 per cent in the number of sales being agreed, and a drop of 15 per cent in the number coming to market when compared with the first six months of 2019.

The company added that, more positively, first-time buyers will find that their typical sector of properties with two bedrooms or fewer has virtually the same supply levels as in 2019 and the stock shortage is less acute.

Marc von Grundherr, director of Benham & Reeves estate agent, said: “There’s no doubt the stamp duty holiday has been the catalyst for this impressive market performanc­e. But it isn’t the driving factor behind the intent to purchase for home-buyers and so a robust level of activity will remain long after it has expired.

There’s no doubt the stamp duty holiday has been the catalyst. Benham & Reeves estate agent director Marc von Grundherr.

“When you couple heightened demand with a severe shortage of stock, it’s very likely that property values will remain buoyant for the remainder of the year, at the very least.”

Figures from the National Housing Federation, which represents housing associatio­ns that provide homes for six million people, obtained exclusivel­y by The Yorkshire Post revealed the huge gulf between property prices and wages in the region.

The Harrogate district is the most expensive location in Yorkshire and the Humber to purchase a home, with the average cost of a property now £353,121, while the average wage is £31,814.

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