The number of properties selling at above the asking price has reached an all-time high, according to estate agents.
In June two in five (40%) homes sold for above the original asking price as buyer demand heightened in the run up to stamp duty holiday deadline.
This was the third month in a row the number of homes selling above the asking price had reached record levels. In May the number was at 33%, according to the data from NAEA Propertymark, which is the professional body for estate agents.
However, in a market that is fertile for sellers, things aren’t quite as rosy for buyers. NAEA Propertymark’s June Housing Report also revealed there were as many as 19 buyers per property on average.
Mark Hayward, chief policy advisor for Propertymark said: “It is astonishing to see demand for housing breaking records yet again this month, with more and more homes selling for over the asking price this year as consumers hurried to beat the first tapered stamp duty deadline.
“With 19 buyers per available property, we are very firmly still in a strong sellers’ market; properties are being snapped up swiftly and at record high prices.”
House prices
With these figures providing further evidence of inflated house prices, concern over first-time buyer affordability is set also to grow.
Yet, NAEA’s figures show the proportion of sales made to those taking their first step on the property ladder in June was 27% – the same as in March this year.
So how will things progress in the rest of the year?
Mark added: “We do anticipate a rebalancing of the market over the coming months however, which is much needed.
“As the stamp duty holiday continues to be phased out and people return to normality now that most Covid restrictions have been lifted, they will be spending money saved during the pandemic on white goods for their new homes.”
