House prices in the UK have reached an all-time high, with some areas seeing increases of more than 40% year on year. The average price now stands at £224,000 – a third higher than it was at the beginning of 2018.
The “will house prices drop soon” is a question that has been asked many times. The answer to the question is no, house prices will not drop any time soon.
There has been a ‘full house’ of price increases in the UK (Picture: Metro.co.uk)
According to recent data, asking prices for UK homes are reaching new highs in all countries and areas of the country.
For the first time since March 2007, all market sectors are seeing record fees demanded, implying that the nation is seeing an extraordinarily uncommon ‘full house’ of increases.
According to the property website Rightmove, the average asking price increased by 1.8 percent in October, reaching £5,983.
That brings the total to £344,445.
Prices are rising for first-time buyers, second-time purchasers, and bigger family-sized houses, according to the website’s analysis of the three groups.
Average asking prices in London have risen to almost £650,000, but in the north east, where average asking prices are the lowest in the country, they are less than £170,000.
‘Competition for property for sale remains intense this fall, with average prices climbing by over £6,000 in the month,’ said Tim Bannister, director of property statistics at Rightmove.
The average asking price in London is currently £650,000 (picture credit: Getty Images/iStockphoto).
‘While more homes are coming to market, the supply is still insufficient to replace the stock that is being devoured.’
‘As a result, new price records have been reached across the board, with every area of the United Kingdom and all three market categories of first-time buyers, second-steppers, and top-of-the-ladder achieving all-time highs,’ he stated.
‘This ‘full house’ is a very unusual occurrence; it hasn’t happened since March 2007.’
The average cost of a first-time buyer’s house has risen to £210,672, while the average cost of a second-time buyer’s home has risen to £315,486.
The average price of a larger family house at the top of the property ladder was £630,819.
According to Rightmove, the following were the average asking prices in different locations of the UK in October:
– £174,934 (Scotland)
– £167,935 in the North East
£221,291 in Yorkshire and the Humber
– £232,639 in the North West
£267,095 – East Midlands
£263,008 – West Midlands
£396,232 – East of England
– £237,830 in Wales
– £650,683 in London
– £359,906 in the South West
– £458,456 in the South East
According to Rightmove, the number of sales agreed increased by 15.2 percent in September compared to the same month last year.
Stock shortages witnessed following the first coronavirus shutdown last year, according to Mr Bannister, are likely to persist.
Demand outstripping supply, according to the website, provides a chance for owners wishing to sell and cash out if they are downsizing or do not need to acquire another home.
‘Stock shortages continue to push prices higher, albeit correct pricing rather than overpricing is vitally crucial to get potential buyers through the door,’ said Mark Ross, managing director of estate brokerage Redbrik.
‘We anticipate that prices will continue to climb, although at a slower rate.’ This should encourage buyers and sellers to come to the market since they will be more aware of the less frenetic circumstances.’
Buyers can anticipate competition for houses if they have not previously decided on a selling price, according to Nick Menzies, regional partner with the Robinson Jackson Group.
‘Despite the stamp duty tax free threshold (in England and Northern Ireland) returning to its regular level on October 1, demand from property seekers hasn’t diminished,’ said Cory Askew, head of sales at Chestertons.
‘Office employees are returning to London, and overseas purchasers are steadily increasing. Sellers have taken notice of this and do not feel compelled to drop their asking price as a result of the increased demand for homes.’
However, Chestertons’ head of research, Nick Barnes, predicted that price rise will be controlled in the future.
‘The expiration of the stamp duty vacation, along with the government’s furlough program, will serve as a brake on buyer demand, limiting future price increases.’
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Frequently Asked Questions
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