Average asking prices have climbed by an average of £7,785, or 2.3%, in the past month, Rightmove says, as the buying frenzy continues despite the end of the stamp duty holiday.
The 2.3% increase in asking prices is the highest monthly growth rate ever recorded by the property website.
Rightmove said fear of missing out (FOMO) was driving the surge, with prices now 9.5% higher than a year ago to breach a record average of £348,804. This means that average asking prices have now risen by nearly £40,000 in the two years since the pandemic started, compared to just over £9,000 in the previous two years
“A fear of missing out on one’s dream home is really driving market behaviour at the moment, as movers look to do all that they can to avoid the disappointment of being too slow to secure their ideal property,” said Tim Bannister, Rightmove’s director of property data.
The latest data from the portal, released this morning, shows more potential buyers are sending enquiries to agents, with the number 16% higher than this time last year.
New property listings are up 11% compared to the same period last year, suggesting more sellers are coming to market before looking for a property to purchase, to avoid missing out on their next home.
The number of people requesting a home valuation from an estate agent was up 11% in January compared to last year
Meanwhile, London recorded the biggest annual jump in number of buyers sending enquiries of any region, and highest annual rate of price growth since 2016, as the end of pandemic restrictions and a return to the office fuel renewed demand in the capital
Bannister commented: “The data suggests that people are by no means done with their pandemic-driven moves. Such a significant societal event means that even two years on from the start of the pandemic, people are continuing to re-consider their priorities and where they want to live.
“As the final legal restrictions look to be ending soon, and more businesses are encouraging a return to the office for at least part of the week, we now have a group of movers who are looking to return closer to major cities, or at least within comfortable commuting distance of their workplaces. High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month.
“The rising cost of living is undoubtedly affecting many people’s finances, especially those trying to save up enough for a deposit to get on the ladder or to trade up. However, despite rising costs and rising interest rates, the data right now shows demand rising across the whole of Great Britain, with many people determined to move as we head into the spring home-moving season.”
He continued: “We’re seeing buyers sending more enquiries for available homes than usual, and doing everything that they can to put themselves at the top of the list. Setting up instant property alerts, keeping a keen eye on fresh property stock coming to market each day, and acting immediately rather than waiting are other tactics that some successful buyers are using.
“Those would-be sellers who are considering coming to market in the near future will be pleased to hear that March is historically the best time to sell, with sellers normally seeing the most enquiries for their property, and therefore the best chance of a successful sale.”
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