This month, house prices in the UK rose sharply, marking the tenth consecutive monthly increase and a continuous streak of rises since 2016. However, according
to Halifax’s most recent market study, growth is predicted to slow later this year. *
In April, house prices rose by 1.1% bringing average prices to a new high of £286,079. Over the last two years, average property prices have increased by £47,568. *
It took the previous five years between October 2014 and April 2020 to achieve the equivalent increase, indicating how quickly the market is currently moving.
Homes are selling quicker than ever
The spring market is moving at a record pace. Competition is fierce, and homes are selling twice as quickly as they were in 2019. The national asking price of a home has now reached £286,079 for the third month in a row. The average price in London has already reached £667,110, making this spring one of the best periods the market has ever seen. **
Prices are continuing to rise due to a lack of homes on the market, and increased demand from buyers. Plus, some homeowners have been deterred from listing their houses for sale due to the rapid speed of the market and competition among purchasers looking to move up. This means that, when accepting an offer, more than half of all homeowners get their asking price or more.
If you can get both a rapid sale and a quick purchase, it’s a lot less stressful than the uncertainties of a slower market, where finding a buyer for your property can take months or not happen at all. Because of this, now is the ideal time to consider putting your property on the market.
According to the property portal, Rightmove, over 125,000 new sellers took advantage of the excellent seller’s market, but more are needed in all locations and property sectors to meet the high buyer demand.
Which areas are seeing the largest increase in asking prices?
The top ten city hotspots in the UK have outpaced the national asking price growth of 9.9%, reaching highs of 12.6%. This is due to the substantial number of buyers wanting to return to city life, outnumbering the number of properties available. **
Bath has taken the top spot in the UK, according to Rightmove’s latest market data, with asking prices growing more than any other city, rising by 15% last year. **
Truro, in Cornwall, was close behind, rising by 14.8%, while Southend-On-Sea, the UK’s newest city, after being awarded city status earlier this year, came in third with a 13.4% increase in yearly asking prices. **
The top five city asking price hotspots are in some of the most popular coastal and country locations from the previous year, illustrating the balance that many buyers are looking for between being close to work and city amenities while also having more space. **
The number of houses available in the Southwest, where the value hotspots of Bath, Truro, Plymouth, and Gloucester are located, has decreased by 39% year on year. **
Because of the supply and demand imbalance, there is fierce competition among buyers for the few available homes.
Glasgow, Stirling, and Sheffield are among the most competitive cities for home buyers, due to the number of people enquiring about each available property.
Exeter is the city with the most competitive hotspot, with competition more than doubling in the last year (+110%), the largest rise of any city.
Looking to take advantage of the market rush? Book a valuation today.
*According to Halifax
**According to Rightmove
