Buyers are likely to encounter some of the highest average asking prices for properties ever seen in Britain this Spring, Rightmove is predicting.
The property website thinks we are heading into a market where the huge demand for properties outstrips supply and boosts prices in the process.
Its latest figures for February revealed the average price of a property coming onto the market had risen by 0.8%, or £2,589, which is £40 short of a ‘new all-time high’ for price growth.
Traffic to the website increased by 7.2% compared the same month last year and it experienced ‘record visits’ in January which indicated there is a strong ‘pent up’ demand for housing.
Miles Shipside, director and housing market analyst for Rightmove, said: “This means that spring buyers are likely to be faced with the highest average asking prices ever seen in Britain.”
Sellers’ market
He said buyers who had been hesitating and waiting for more political certainty following the general election outcome would be paying a higher price but could ‘jump into the Spring market with renewed confidence’.
“After three and a half years of Brexit uncertainty, dither and delay, many now seem to have the 2020 vision that this is the year to satisfy their pent-up housing needs,” he said.
And, he added: “Now could be an excellent time to get on the market and sell, seizing the opportunity of achieving a quick sale at a decent price.”
First-time buyer challenge
But while this is positive news for anyone looking to sell, for those attempting to get onto the property ladder the environment is looking more challenging.
Josef Wasinski, co-fouder of Wayhome, said: “These figures will do nothing to raise the spirits of the thousands of reluctant renters, who have no choice but to stay put. Sky-high deposits and significant upfront purchase costs are making homeownership unattainable for those stuck in the rent trap.”
“We need to see a greater focus on lowering the barriers to homeownership. New alternative routes are essential to support those wishing to buy their first home.”
[box style=”4″]
What Mortgage has teamed up with L&C to offer you expert advice on the right mortgage deal.
Whether you’re buying a new home, remortgaging to a new deal or buying an investment property, L&C can help – and you’ll pay no fee for their advice. To find out more, click here.
[/box]
