The average price of a residential property in the UK increased by £852, or 0.3%, month-on-month in January, according to Rightmove.
The latest data the property portal shows that the average asking price for a home this month is £341,019, which is 7.6% higher than in January 2021, the highest annual rate of price growth recorded by Rightmove since May 2016.
Strong demand and continuing low numbers of available homes for sale set up the housing market frenzy to continue into the start of 2022, with early-bird sellers benefitting from increased buyer competition:
The number of buyers enquiring about homes is 15% higher than the same time last year.
The number of available homes for sale per estate agency branch drops again to a new record low of just 12.
As a result, competition among buyers is almost double what it was at this time last year
However, there are early signs that more property choice is on its way, with the first working week of 2022 being the busiest start of the year ever for people requesting agents to come out and value their homes:
The number of home valuation requests in the first working week of 2022 is 44% up on the same period last year, and 48% up on the same period in 2020
Tim Bannister, Rightmove’s director of property data, commented: “New Year sellers and buyers have been quick off the mark this year, with Rightmove recording the highest ever number of Boxing Day sellers coming to market. These early-bird sellers who got themselves ready to come to market are now benefitting from the busiest start to the year that we’ve ever recorded, with the number of prospective buyers enquiring about homes up 15% on this time last year.
“People who have made it their New Year’s resolution to move are finding asking prices are within just one per cent of the record from October last year, and are at the highest level ever recorded for first-time-buyer type homes. All of the signs suggest that prices are likely to continue to rise until more choice is available. Three regions are in most urgent need of new supply, the East Midlands, South West and South East of England, as they are now at unsustainable rates of annual price growth above 10%.”
He added: “It’s clear that the trends which defined the market in 2021 have carried over into this year. That being said, we are seeing early signs of a better balanced market in 2022. The number of requests from would-be sellers to agents to value their home has continued to increase from the end of last year and was at one of its highest points ever on the first working day of this year. While this potential new supply will take a little while to appear on the market, it’s an encouraging sign of more choice for buyers in the coming months.
“The speed at which we’ve seen the fresh choice that has come to market being snapped up by eager buyers over the past 18 months is a reminder to buyers to move fast and book a viewing with the estate agent as soon as a property that could be the one for you comes to market. Almost 40% of people enquiring about a home who have a property to sell say that they are yet to put it on the market.
“In the current market, where they are competing against other buyers who are able to move more quickly, this is likely to mean they’ll miss out on the home they want. To put yourself in the best possible position to proceed, you should become a ‘power buyer’, by making sure your current home is on the market or preferably sold subject to contract first, before starting the search for your new home.”
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