House prices surge into the new year

House prices surge into the new year

The latest Rightmove house price index has revealed that new property coming to market has risen in price by 0.5% (+£1,509) - the second highest rise at this time of year since 2007.

First-time buyers are also seeing a 6.6% year-on-year increase in the number of fresh-to-the-market homes in their target sector of two bedrooms or fewer, the highest since 2007. Additionally, the monthly price increase in this sector is at a near standstill (+0.1%, +£209), attributed to a keenness to attract buy-to-let investors before the April tax deadline.

Miles Shipside, Rightmove director, commented: “Upwards price pressure remains, with the second-highest rise seen at this time of year for nine years. The early snapshot of home-hunter visits in the first week of 2016 is up by 21% on the same period last year to 27.8 million visits, showing demand is not letting up either. Encouragingly for first-time buyers there’s more fresh choice with more property coming to market in their target sector. With their asking prices pretty much the same as a month ago, perhaps the knock-on effects of the more punitive landlord tax regime have arrived early and they now face a dilemma over whether to buy now or wait to see if prices drop in this sector over the next few months.”

Adrian Whittaker, Sales Director, New Street Mortgages, commented: “Today’s figures from Rightmove show that house prices continued to rise over what is typically a quieter period, as a lack of supply coupled with rising demand squeezes the market.

With this imbalance between supply and demand, the speed of a mortgage application could make the difference between having an offer accepted and losing out to another buyer. This makes it is even more important than ever for advisers to choose a lender that has the right technology and processes in place to offer a service that meets the demands of this fast-paced environment.”


Jeremy Duncombe, Director, Legal & General Mortgage Club, added: “This monthly increase in house prices is unusual for this time of year, and we expect house price inflation to climb further over the course of the year. The lack of supply is making the market more competitive and an expected increase in demand in the coming months is likely to exacerbate this issue. The government and housebuilders must work together to address this problem by building more properties of the right size and in the right places to accommodate those looking to buy.  

The government must also look to encourage more efficient use of current housing stock by helping more people to ‘rightsize’ through tax incentives and cuts in stamp duty. This two-tiered approach will help to reduce the current imbalance between supply and demand and make homeownership a more achievable goal for many.”

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RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

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sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

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Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

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Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

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Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

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Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

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brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

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IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

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IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

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cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

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Jo Mullett
Jo Mullett 07 Jul 2017

Here in Swansea, known as the Japanese knotweed capital of the UK, it never fails to amazes me that people have no idea of the potential problems this invasive non-native plant can cause when buying or...

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