The housing market is showing signs of a “new year bounce” in
activity, with new sellers increasing asking prices by an average of
nearly £4,000 in January, property search website Rightmove has
reported.
The price of property coming on the market increased by 1.4% or £3,798 compared with December - despite January usually being a month when asking prices fall, the website said.
Across England and Wales, the average asking price for a property put on the market this month is £273,275, which is 8.2% higher than a year ago.
Rightmove said that while it is still early days, “there are signs of a new year bounce-back”, with visits to the website this year so far running at 10% higher than a year ago.
Meanwhile, people looking to take their first step on the property ladder have the opportunity to grab a cheaper deal this month, the website’s findings suggest. Sellers of typical first-time buyer homes are asking for around £1,132 less than they were in December.
The average asking price on a first-time buyer property is now £163,251, although this is still a significant 10.5% increase on a year ago.
Rightmove said that the recent reforms to stamp duty, which have made the tax bill less expensive for the vast majority of homebuyers, could mean potential savings of as much as £1,250 for a first-time buyer.
Miles Shipside, director of Rightmove, said: “First-time buyers are in a potential win win savings window this month, with the price of property coming to market in this sector being over £1,100 cheaper, coupled with up to £1,250 in stamp duty savings.”
In further signs that the wider market is showing an early pick-up in 2015, Rightmove said it had more than 52m page views on Sunday 11 January, marking a record for the website.
It said that the signs of increased interest in homes for sale, combined with estate agents reporting low stocks of property on the market in popular locations, is likely to create a further upward pressure on prices in desirable areas.
Shipside said these signs of “early bird activity” in 2015 could be a result of the stamp duty changes which were unveiled in December and are expected to encourage more people to move home.
But he continued: “Rightmove still cautions sellers that it will be harder to sell in 2015 than in 2014.”
He said that the looming general election could cause some disruption to the market. Meanwhile, mortgage lenders are showing signs of introducing more selective criteria - and this could mean that buyers who are able to pass the criteria and secure a mortgage will be more fussy about the home they buy, he said.
Shipside said: “Buyers deemed mortgage-worthy will value their hard-won purchase pots and want to spend them wisely.
“That might mean stretching themselves to afford a property that ticks all the boxes, but wanting a heavy discount on one that falls short.”
Rightmove’s figures show that asking prices in London have seen the highest year-on-year increase, at 12.8%, pushing the average price to £566,404. The South West of England has recorded the biggest month-on-month jump in asking prices, with a 3% increase taking the typical price to £267,623.
The north-east of England recorded both the lowest year-on-year increase in sellers’ asking prices and the biggest month-on-month dip. Prices in the north-east stand at £135,055, on average, marking a 0.8% increase on a year ago and a 1.7% month-on-month decrease.
Simon Gerrard, president of the National Association of Estate Agents and managing director of Martyn Gerrard Estate Agents with 11 branches in London, said: “Overall, I think we’ll see a strong first quarter to the year, especially as potential buyers are now getting used to what is expected of them with the stricter lending criteria.”
http://www.theguardian.com/money/2015/jan/19/housing-market-up-new-year-bounce-property?CMP=EMCMONTXT5510I2
The price of property coming on the market increased by 1.4% or £3,798 compared with December - despite January usually being a month when asking prices fall, the website said.
Across England and Wales, the average asking price for a property put on the market this month is £273,275, which is 8.2% higher than a year ago.
Rightmove said that while it is still early days, “there are signs of a new year bounce-back”, with visits to the website this year so far running at 10% higher than a year ago.
Meanwhile, people looking to take their first step on the property ladder have the opportunity to grab a cheaper deal this month, the website’s findings suggest. Sellers of typical first-time buyer homes are asking for around £1,132 less than they were in December.
The average asking price on a first-time buyer property is now £163,251, although this is still a significant 10.5% increase on a year ago.
Rightmove said that the recent reforms to stamp duty, which have made the tax bill less expensive for the vast majority of homebuyers, could mean potential savings of as much as £1,250 for a first-time buyer.
Miles Shipside, director of Rightmove, said: “First-time buyers are in a potential win win savings window this month, with the price of property coming to market in this sector being over £1,100 cheaper, coupled with up to £1,250 in stamp duty savings.”
In further signs that the wider market is showing an early pick-up in 2015, Rightmove said it had more than 52m page views on Sunday 11 January, marking a record for the website.
It said that the signs of increased interest in homes for sale, combined with estate agents reporting low stocks of property on the market in popular locations, is likely to create a further upward pressure on prices in desirable areas.
Shipside said these signs of “early bird activity” in 2015 could be a result of the stamp duty changes which were unveiled in December and are expected to encourage more people to move home.
But he continued: “Rightmove still cautions sellers that it will be harder to sell in 2015 than in 2014.”
He said that the looming general election could cause some disruption to the market. Meanwhile, mortgage lenders are showing signs of introducing more selective criteria - and this could mean that buyers who are able to pass the criteria and secure a mortgage will be more fussy about the home they buy, he said.
Shipside said: “Buyers deemed mortgage-worthy will value their hard-won purchase pots and want to spend them wisely.
“That might mean stretching themselves to afford a property that ticks all the boxes, but wanting a heavy discount on one that falls short.”
Rightmove’s figures show that asking prices in London have seen the highest year-on-year increase, at 12.8%, pushing the average price to £566,404. The South West of England has recorded the biggest month-on-month jump in asking prices, with a 3% increase taking the typical price to £267,623.
The north-east of England recorded both the lowest year-on-year increase in sellers’ asking prices and the biggest month-on-month dip. Prices in the north-east stand at £135,055, on average, marking a 0.8% increase on a year ago and a 1.7% month-on-month decrease.
Simon Gerrard, president of the National Association of Estate Agents and managing director of Martyn Gerrard Estate Agents with 11 branches in London, said: “Overall, I think we’ll see a strong first quarter to the year, especially as potential buyers are now getting used to what is expected of them with the stricter lending criteria.”
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