Property asking prices up £35,650 in a YEAR, according to Rightmove – but it warns cost of living crisis could slow growth later in 2022
- Typical asking price has risen by 9.9% in the past year, says the listing site
- Monthly rise of 1.6% was lower than the previous two months
- More than half of homes are selling for more than the asking price
- Rightmove said ‘economic headwinds’ could hamper price growth
The asking price of a typical home for sale has hit a record high of more than £360,000, rising almost 10 per cent in the last year alone.
The average home is now listed for £360,101 – an increase of 9.9 per cent, or £35,650, since April 2021 and 1.6 per cent (£5,540) in the last month alone, new Rightmove data suggests.
It is the third consecutive month that prices have hit an all-time high.
On the rise: Asking prices continue to grow, according to Rightmove, although the pace of that growth appears to be slowing as the cost of living crisis bites
The bulk of the increase has occurred in the last three months, when prices have risen by more than £19,000 – the biggest price jump in any three-month period since Rightmove’s records began.
This is despite the growing cost of living crisis and pressure on household budgets.
However, the pace of price rises does now appear to be tailing off a little, with this month’s increase of 1.6 per cent being lower than the 1.7 per cent and 2.3 per cent recorded in the previous two months.
Still, Rightmove said 53 per cent of properties sold for more than the asking price in April, which was the highest proportion ever recorded.
The average property sold for 98.9 per cent of the final advertised asking price, which is also the highest percentage since records began.
Ups and downs: Asking prices went down at the end of 2021, but have been going up again in the first months of this year
Five-year trend: Asking prices have spiked since the beginning of the pandemic in 2020
In addition, homes are selling faster than ever with an average of just 33 days between listing and being sold subject to contract.
This time in 2019, the average time to sell was twice that at 67 days.
The number of transactions also remains high, more than 21 per cent greater than before the pandemic in 2019.
Rightmove put the price increases down to the fact that the number of properties for sale was not enough to meet buyer demand, leading to bidding wars.
Ailsa Mather, director at estate agent Andrew Coulson in Hexham, said: ‘A lot of buyers are chasing the same houses resulting in many properties going to best offers.
‘Demand for property in the countryside and more rural areas has increased due to Covid – people are seeking wide open spaces and gardens.’
What types of home are most popular with buyers?
Across all regions of the UK, and in all of Rightmove’s lower, middle, and upper market sectors, properties hit new record price levels in April.
This is only the second time since 2007 that Rightmove has measured such an event, with the previous ‘full house’ being in October of last year.
Wales and the South West saw the highest month-on-month price increases at 2.7 per cent, while Wales saw the highest annual rise at a huge 14.5 per cent.
Even London, which struggled during the pandemic as many no longer needed to commute to the office, has seen prices increase by 6.6 per cent in the last year.
However, Rightmove said that growing economic headwinds could start to slow the pace of price rises later in 2022.
Tim Bannister, Rightmove’s director of property data said: ‘With three new monthly price records in a row, 2022 has started with price-rise momentum even greater than during the stamp-duty-holiday-fuelled market of last year.
‘While growing affordability constraints mean that this momentum is not sustainable for the longer term, the high demand from a large number of buyers chasing too few properties for sale has led to a spring price frenzy, a hat-trick of record price months, and the largest price increase for a three-month period Rightmove has ever recorded.’
Buyer enquiries are staring to fall slightly compared to this time in 2021, which was during the stamp duty holiday which encouraged many people to buy.
However, they are still far higher than they were in the more ‘normal’ pre-pandemic market of 2019.
Bannister added: ‘There are some early signs of an easing off from the frenetic pace of price rises, and buyer enquiries to agents are down by 16 per cent on last year’s stamp-duty frenzy.
‘However, incredibly, buyer enquiries are still 65 per cent above the more normal market of 2019 and the number of sales agreed is up 21 per cent.’