- Prices have increased across the UK for the first time since 2007
- Rightmove’s House Price Index says the average increase in a month is £5,983
- North West and Wales jointly lead the charge with 2.3% growth
- Buyers want to meet the cost of the mortgage before interest rate hikes
Every region in the UK broke records for home-seeking prices in October, as the national average jumped nearly £5,000.
According to RightMove’s monthly house price index, this was the first time that every sector broke price records since March 2007.
The property portal said that this ‘full house’ of hike in prices was an ‘extremely rare event’.
The typical asking price for a house has jumped across all regions of the UK, and now sits at the national average of £34,445. This is according to Rightmove’s House Price Index
The normal price of a property coming to market rose by 1.8 percent or £5,983 over the previous month, the biggest increase at this time of year since October 2015.
Demand prices now average £344,445, a 6.5 percent increase from October 2020.
North West and Wales notably both saw a 2.3 percent increase in prices. They reached £232,639 and £237,830 respectively.
South West and London both saw a 1.9 percent monthly change, with prices reaching £359,906 and £650,683.
Sales numbers were up more than 15 percent in 2019 compared to the same time period.
Prices have also increased across all property market segments. First-time buyers saw a 0.8o percent increase in prices to £210,672, while second steppers saw a 1.4 percent increase to £315,486 and the top of the ladder saw a 1.7 percent increase to £630,819. However, those figures exclude Central London.
Rightmove put the increase down for buyers looking to secure their new homes ahead of a potential base rate hike, which is being predicted by some for the end of the year.
If interest rates rise, mortgage rates will rise above their current record lows.
This is already happening in some cases as lenders move to pre-empt the increase.
North West and Wales saw the biggest asking price increases. He grew by 2.3% in a month
Volatility: Demanding price hikes for the whole of the UK over the past five years
The stamp duty holiday was earlier driving up activity and house prices, but it ended at the end of September.
The continued price increase provides an opportunity for those who are downsizing, or don’t need to buy another asset, to sell for up to cash.
Tim Bannister, Rightmove’s director of property data, said: ‘Competition for properties for sale remains hot this autumn, with average prices rising by around £6,000 a month.
“Although more assets are coming into the market, this level is still not enough to replenish the stock that is being snapped up.
‘As a result, new price records have been set across the board, with every region of Great Britain and first-time buyers, second-steppers and top of the ladder reaching all-time highs in all three market segments.’
Demand prices hit new highs for buyers at both ends of the market and in the middle
Also rising home prices is a lack of new housing stock coming into the market, although Rightmove said the situation is slowly improving.
Its latest weekly snapshot shows that the number of new sellers entering the market was lower in the same period in 2019, but down by just 3.2 percent.
Bannister said: ‘This ‘full house’ is an extremely rare event, occurring for the first time since March 2007.
‘Stocks began to crunch after the first lockdown, and they are set to continue with underlying housing market fundamentals remaining strong, and buying and fixing their mortgage interest rates ahead of the widely expected rate hike. An additional incentive for.’
In these ‘full house’ market conditions, many homes are being quickly demolished and sellers have a choice of competing buyers, buyers who have already sold their property under contract or nothing to sell. Yes, they are being liked.
This has caused some people to put their home on the market before identifying a new property.
Bannister said: ‘2021 has been the year of power buyers, who are in the most powerful position to move quickly and are certainly ruling out other buyers who have to sell but have yet to hit the market.
‘One agent’s analysis that 87 percent of their sales were snatched up by agreed buyers who were already in a position to move in is quite typical of the reports of many agents.’
Despite the hot market, most homes still sell below the asking price.
According to the latest Halifax House Price Index, the typical selling price is £267,587.
Property agent Benham & Reeves director, Mark von Grundar, said: ‘With the market remaining particularly bullish, those entering to sell properties are pricing higher and this has driven up prices where Inquiry for prices is concerned.
‘Early asking price expectations are perhaps a bit over-optimistic, to say the least, a lack of stock to meet demand means homes are selling fast and for a very good price.’