The UK property market is experiencing a mini-boom. The latest Rightmove House Price Index shows properties are coming on at record average asking prices and almost half of the properties that came to the market post-lockdown have already had a sale agreed.
Boom time and UK property have in recent years seemed someone alien to each other, but all this has changed. The latest Rightmove house price index has revealed an incredible resurgence in sales and activity across multiple parts of the market.
The above must make confusing reading for all the property experts who proclaimed doom and gloom regarding the market’s short-term outlook.
Within the past month, I’ve been left aghast when reading some of the property market predictions. Many of which are made by people who appear to have never actually worked in the property industry and by some who’ve probably never experienced the pleasure and pain of buying a property.
Fortunately, I’ve not been one who’s adopted the appetite for always looking at the worst-case scenario. In my property articles, I’ve clearly stated this year was never going to be as bad as some ‘experts’ proclaimed, and this was based upon some basic and obvious fundamentals underpinning the market.
Without trying to sound like a stuck record, it’s simply a matter of supply and demand.
The latest Rightmove house price index has not only shown that we are well and truly back in a boom time it also clearly states how wrong the doom-mongers were while vindicating those who had a more positive outlook.
Highlight from the latest Rightmove data:
- Since the beginning of July, buyer enquiries are up 75% in Britain
- In England, sales agreed are up by 15% on last year. In the first five days after the stamp duty holiday was announced, sales increased by 35% on the same days a year earlier.
- In the first month following the reopening of the market on May 13th, almost half (44%) of new listings that were put up for sale have already been marked as sale agreed.
In addition to the above, there has also been a dramatic increase in the amount of available stock. According to Rightmove, it is now only 13% down in Great Britain, and Rightmove states there are now more low deposit mortgages available for first-time buyers. With regards to the mortgage side of things, we’d advise you read our recent article compiled using Moneyfacts data which does offer a different view.
As we mentioned in the boom time heading, the average asking price for a property is also up significantly. It currently stands at £320,265 which when compared to March this year is an increase of 2.4% or in monetary terms +£7,640.
Obviously, new stock alone is not enough to power these boom-times in the market. A hugely important factor is the volume of buyers, and the Rightmove data has shown that unique buyer enquiries are up by 75% when compared to the same time last year.
What the property industry is saying
In my opinion, it is the people working in the property industry who I feel are best placed to offer an opinion on the direction of the property market. Here are comments from some leading lights who’ve consistently argued against the negative forecasts and are now reaping the benefits of the boom times:
“Oh, ye of little faith. Previous reports from a number of doomster commentators as to the demise of the UK property market seem to have been greatly exaggerated as is often the case.
Prices are up, enquiries are through the roof and sales are being agreed like billy-o, and that’s even before the effects of the temporary stamp duty reprieve have had time to kick in.
Hold on tight folks; we’re in for a fast ride over the next few months and prices will rise further as a consequence of this unprecedented demand. Albeit somewhat fabricated by a chancellor determined to bolster the flagging economy via the property market.” – Marc von Grundherr, director of London lettings and estate agent Benham and Reeves.
“Light the blue touch-paper indeed. Such significant levels of buyer activity are unheard of within the UK market and should ensure a nitrous-oxide fuelled return to form for the UK property market.
This is, of course, a result of a double whammy of pent up demand that had been throttled during the lockdown and the latest government incentives via a huge stamp duty saving.
While the market will return to a more familiar form of ‘normality’ as this demand levels out, it has truly defibrillated any fears of a downturn in home values.
In addition to this, the Government’s continued failure to address the UK’s housing shortage will ensure that even when buyer demand returns to normal levels, prices will remain buoyant due to the supply and demand imbalance.” – James Forester, Managing Director of West Midlands-based estate agency Barrows and Forrester.
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