Average asking prices have risen ‘surprisingly’ over the past four weeks, after three consecutive months of falling, new data from real estate website Rightmove reveals.
According to the latest figures from Rightmove, the average asking price has increased by £ 1,522, or 0.5 percent, to £ 318,580 in the last month.
The real estate site says one in five buyers who agreed to a purchase in July last year still hasn’t finalized six months later, likely leaving about 100,000 buyers missing out on their expected tax savings.
Last week, the Royal Institute of Chartered Surveyors also said prices had risen significantly last month, leading an insider to claim that homes are being priced by sellers according to “ expectation rather than reality. ”
Ups and downs: Shifts in property prices in the past month and year, according to Rightmove
But with the Chancellor’s much-anticipated March 3 budget around the corner, there is speculation that Rishi Sunak is considering extending the stamp duty holiday by six weeks to mid-May.
Sunak is considering the limited extension to allay fears that the sale will fail after the March 31 deadline has passed.
He would be reluctant to push for a six-month extension because of the ‘free’ impact it would have on tax revenues.
In its latest report on the state of the real estate market, Rightmove said the number of new buyers continued to grow last month, with demand exceeding supply and driving prices up.
It said the number of visits to its website in the past month was 45 percent higher than a year ago at the same point.
Prospective buyers have sent 18 percent more inquiries, while the number of agreed-upon purchases is up 7 percent, Rightmove said.
The Rics, on the other hand, said the number of buyer inquiries and agreed-upon sale both declined over the past month.
Expansion? Rishi Sunak is reportedly considering extending the stamp duty holiday
Trends: Average asking prices of houses in Great Britain over the past five years
Pandemic Trends: Average asking price shifts since February last year
The number of new sellers is down 21 percent year-over-year, “as family home owners are delaying market entry, perhaps due to distraction from home schooling,” Rightmove said.
Homes also seem to take longer to sell than they did a few months ago, from 57 in December to 65 at the end of January. In London, the average time it takes to sell a house, according to Rightmove, is up to 72 days.
Richard Freshwater, a director at Cheffins in Cambridge, said: “Closing number 3 brought a decline in property appraisals. This has led to a lack of new available inventory in the market, particularly in the higher price ranges, which makes us predict that property values will rise. ‘
Meanwhile, Kate Eales, head of the regional real estate agency at Strutt & Parker brokers said, ‘We see some sellers are concerned about viewings and the practicalities of marketing their property. Some are waiting for restrictions to ease before putting their homes on the market and as a result, stocks have fallen. ‘
Tim Bannister, Rightmove’s director of real estate data, said that despite the impending stamp duty deadline, all major buyer metrics were ahead of early 2020, which itself was an active period as the market was boosted by the ‘Boris bounce.’
He added: ‘In addition to the current lockdown that is again motivating buyer demand, the restrictions have also been a factor in limiting new supply, leading to modest upward price pressure.
These are strong signs that demand from new buyers after March 31 is not on a cliff.
“It remains to be seen if this momentum will be enough to make up for the elimination of the stamp duty savings that have benefited many buyers and have given the entire market a sense of urgency.”
How long? With higher asking prices, the time it takes to secure has increased
Stock issues: The average number of properties on estate agents’ books has fallen
As for what’s happening across the country, Rightmove said average asking prices in London have risen 3 percent in the past month, but remain at 1.1 percent year-on-year.
Over the past month, average asking prices in Scotland, the Northwest and the Northeast respectively have increased by 2.2 percent, 2.5 percent and 2.2 percent respectively.
But in the Southwest, East Midlands and West Midland, average asking prices have all fallen slightly over the past month.
Colby Short, founder and boss of the GetAgent website, sums up the market’s outlook: “There seems to be an overarching view that the world will stop spinning once the current stamp duty holiday is over, and this is downright ridiculous.”
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