House price latest and what could happen next?

Update: Average prices in 2021 are 4.5% higher than at the end of 2020.

Despite recent projections that the property market was set to cool down in 2022 there was more great news for sellers this month as demand continued to rise and the market looked to remain in good health.

According to Rightmove house prices increased again this month (£341,019) taking annual growth to 7.6% (since) January 2021. This is the highest yearly price rise since 2016.

But it's not just a substantial rise in prices - there are a number of positive indicators for those considering selling their home in 2022.

A continuing trend of low numbers of sellers listing their homes meant that those that did come to market reaped huge benefits as buyers had to make substantial offers and move promptly in order to secure a purchase ahead of other buyers. As well as a lack of sellers there is a growing number of buyers looking to purchase a home - in fact, the number of enquiries to agents across the UK is 15% higher than this time last year.

Where have prices increased the most across the UK?

Despite many positive indicators for the market in 2022, it’s fair to say that some areas of the United Kingdom are faring better than others. Those planning a move in the south-west of England will find the market in particularly good health. Growth here is up 2.4% month on month and a massive 11.6% year on year. It takes on average 32 days to sell in the region - currently, it’s the fastest moving market in England and Wales.

If you’re considering selling your home in the north-east of England, there’s great news. Growth is up 2.5% month on month and 6% year on year. It takes on average 40 days to sell the region. Sellers in Scotland are also in luck as demand is so high it now only takes 27 days to sell a home.

Is buy-to-let still worth it?

Buyers offered a wider choice but the market still favour sellers

There were promising signs for buyers with a 14% increase in new sellers listing their properties. This is an encouraging sign that the market is returning to 'normal', particularly as Autumn usually sees a rise in listings as people plan to move home in time for Christmas. Despite this, sellers are still in a favourable position often choosing from a number of bidders.

To be successful, buyers must do what they can to be attractive particularly when it comes to minimising the potential for delays. Many of our agents are reporting the use of tactics such as ‘sell before you buy' being very successful. If you're unsure which approach is best to take speak with an agent for advice. 

A return to 'normal' amplifies demand

With millions of Britons returning to their respective workplaces there is likely to be a continued desire for homes as people adapt their lifestyles accordingly. Many experts are predicting activity levels will remain high for the foreseeable future. Zoopla recently reported that UK city house prices had risen 6% with a particularly notable rise in London and the suburbs around the capital - a rise of 2.5%.

What's happening in the rental market? 

There is a similar trend emerging in the rental market as a general demand for rental homes is notable in and around major cities. After falling into negative territory at the start of 2021, rental growth is now back into positive territory in Manchester, Leeds and Edinburgh. In fact, the rental market is moving at the fastest rate since 2016, with an average time to rent just 15 days across the UK with rental growth outside London hitting a 13-year high.

Final thought...

As we head into the autumn, the housing market is still very active across both the sales and rental sectors. If you're considering selling, this is a great time to come to market not only as there are plenty of buyers but also an increasing number of homes available to buy. Experts predict that house prices will rise between 4% and 6% a year between 2022 and 2024.* The boom in demand for second homes, which started in 2020 in line with travel restrictions, shows no signs of slowing down.

Similarly, the market for lettings and increase in rental prices offers a huge opportunity not only for existing landlords but anybody considering buy-to-let.

To find out how much your home is worth try our FREE valuation service. All we need is your postcode and a minute of your time. 

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https://advantage.zpg.co.uk/house-price-index-report/ August 2021

https://www.rightmove.co.uk/news/house-price-index/ September 2021

https://www.theguardian.com/money/2021/oct/07/uk-house-prices-show-strongest-monthly-rise-since-2007