UK House Prices September 2021
The national average asking price of newly marketed properties rose this month to an all-time high of £338,462, according to the latest data from the property portal Rightmove.
The report added to signs that the housing market has retained some of its upward momentum even after the gradual withdrawal of temporary tax breaks on property purchases.
Finance minister Rishi Sunak cut stamp duty, a tax on house purchases, in July 2020. But in July it started to return to its pre-pandemic level and the tax break fully expires this month.
Rightmove said fierce competition among buyers has continued against the backdrop of a record low number of properties for sale, with the high ratio of buyer demand to properties for sale resulting in a continued “stock starved” market.
It added that the rise of the ‘power buyer’, those who have already sold their own homes, have cash in the bank, or are first-time buyers with a mortgage agreed, shows no signs of stopping.
Rightmove states that the number of prospective buyers per property had more than doubled compared with pre-pandemic levels – chiming with a similar report from the Royal Institution of Chartered Surveyors.
The property portal said there were signs that supply and demand for properties could start to balance out this autumn. The number of new listings posted on Rightmove in the first two weeks of September was 14% higher compared with the figure for the last two weeks of August.
Tim Bannister, Rightmove’s Director of Property Data comments:
“This 14% increase in the number of new sellers coming to market in the first half of September is only an early snapshot, but autumn is traditionally a busy period, as those owners who have hesitated thus far during the year see the few months before Christmas as an opportunity to belatedly get their moving plans underway. The frenetic pace of this year’s market may also have put some potential movers off, but there are signs of a return of some normality. It’s still a strong sellers’ market in most of the country, so those looking to purchase need to do all in their power to maximise their appeal to sellers, who will often have several offers, and will usually choose the one that gives them the best chance of a quick sale. Agents are reporting that the most successful buyers are using tactics such as ‘sell before you buy’ to increase their buying power in this competitive market. Estate agents know the best methods for movers to secure their ideal properties, so it’s well worth discussing your options with them.”
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Source: Rightmove, Forbes, Reuters