Record house price growth

It is perfectly normal to see price rises in the property market in Spring, but there has been another new price record, as the average growth in house prices hit 14.3% in February, the highest growth rate in 17 years.

House prices are now more than a fifth higher than in the months leading up to the pandemic in 2020.

Prices are being accelerated from the robust demand, something we’ve been reporting on for some time now. The limited supply, in comparison, makes for tough competition from buyers who need to be in a good position for an offer to be accepted.

There’s a strong UK labour market; job vacancies reached a record high in 2021, and unemployment has continued to fall. Whilst lockdown conditions presented a plethora of economic concerns, it also helped many to build up significant savings, with leisure, childcare, and other outgoings forcibly paused.

Another opportunity the lockdowns provided, was that of reflection. Homeowners and tenants were provided with plenty of time to review their current living situation, and ultimately determine what changes they want to make.

The stamp duty holiday created a prime chance for buyers, with the race on to benefit from the savings available. This created a buoyant buying market, that has since understandably slowed, but has not yet come anywhere near receding to pre-pandemic levels. Ultimately, the demand combined with the shortage of homes on the market has pushed up asking prices.

If you are looking to sell, it’s not only the increase in the value of your home that makes this a prime opportunity. We’ve been reporting for well over a year now that demand is widely outperforming supply, this is now backed by Rightmove. In fact, this March has the biggest difference between supply and demand for this time of year, ever! There are more than twice as many buyers as sellers in the market, according to Rightmove.

Nationwide’s report was published as the Office for National Statistics revised its UK economic growth estimate for Oct-Dec 2021, estimating a 1.3% growth, rather than the previously stated 1%.

House prices have continued to rise, month on month, reaching new records, presenting a great opportunity for anyone considering coming to the market with a property to sell.

We always see a busy housing market this time of year. Home valuations are on the rise and we expect exciting months ahead.

If you are hesitating over selling, these market statistics will hopefully reassure you that the conditions are optimal for a quick sale. What’s more, if you are looking for a new home, you will be in a better buying position if your own property is sold already given the competition in buyer demand.

If you would like a valuation, advice about selling your home, or to register as a buyer, please contact your local branch below.

Ash Vale – 01252 353030 | ashvale@mackenziesmith.co.uk

Aldershot – 01252 983730 | aldershot@mackenziesmith.co.uk

Farnborough – 01252 375999 | farnborough@mackenziesmith.co.uk

Fleet – 01252 812121 | fleet@mackenziesmith.co.uk

Hook – 01256 764666 | hook@mackenziesmith.co.uk

Hartley Wintney – 01252 844015 | hartleywintney@mackenziesmith.co.uk

Yateley – 01252 597900 | yateley@mackenziesmith.co.uk

Source: BBC