According to the latest data from Rightmove, we have seen a sharp rise in house prices across the UK as buyers rush to move ahead of a likely rise in the cost of borrowing.
Key statistics show that:
- House prices are at record levels across all regions and sectors.
- Asking prices rose by 1.8% in October – the largest rise in six years.
- There was a rise of 15.2% in sales agreed in September compared to 2019.
- Demand is still outweighing supply, even though more properties are being listed for sale.
The latest house price index shows that the price of a home coming to the market in October was 1.8% higher which is the largest rise since 2015 with the average asking price up 6.5% annually. What’s more, for the first time since March 2007, across all sectors in all regions, there were price records set.
The stamp duty holiday which only ended in England and Wales recently, has fuelled UK-wide bumper growth figures – with the tax having returned to all UK regions from September.
The number of sales agreed was 15.2% higher last month compared to the same month two years ago. However, while the number of new properties coming to market has been slightly higher, supply still cannot keep up with demand.
We anticipate that competition for property will remain strong even though there are more properties slowly coming onto the market – however it’s not enough to replenish stock.
Interest rates are at a record low of 0.1% but a rise is expected the BoE looks to address rising inflation. This will inevitably lead to an impact on the property market.
to note that changes in policy by the Bank of England could lead to a widespread impact on the property market, along with many others.”