Rightmove July 2020 Results
Recent results from Rightmove show the average asking price of property coming to market in the UK hit a record in July with prices 2.4% (+£7,640) higher than in March pre-lockdown, and the 3.7% annual rate of increase is the highest since December 2016. Read full results here
The price of property coming to market is an accurate early indicator of demand and is shown by buyer enquiries currently being up by 75% in July compared to the same period a year ago. The number of sales being agreed so far this month is also exceeding the prior year’s figures in all three nations.
Miles Shipside, Rightmove director and housing market analyst comments: “The unexpected mini-boom continues to gather momentum as more nations reopen. Overall buyer enquiries are up by an incredible 75% year-on-year in Britain and we expect activity will increase even further as Scotland has not yet been open for a full month, and Wales still has some housing market restrictions in place. The busy until interrupted spring market has now picked up where it left off and has been accelerated by both time-limited stamp duty holidays and by homeowners reappraising their homes and lifestyles because of the lockdown. The strength of buyer demand has contributed to record prices, with the 3.7% annual rate of increase being the highest for over three and a half years. These figures are the earliest indicator of house price trends. They show on average prices gently rising not falling, and this will be reflected in the coming months in other house price reports.”
Shipside adds: ”There is a window of opportunity for sellers to come to market and to find a buyer who is tempted by the stamp duty savings. Although March next year may sound like a long time away, in reality sellers need to find a buyer before Christmas, to allow a further three months for completion of the legal process to beat the deadline. While property is selling much faster than a year ago, it’s important not to over-price and miss this window. It’s still a price sensitive market with buyers having limits on what they are able to borrow, and the uncertain economic outlook making them more cautious.”
The immediate effect of the stamp duty cut in England has been to amplify the buyer surge. The number of sales agreed in the five days after the announcement (between the 8th and 12th July) was up by 35% on the same days a year ago.
Shipside notes: “While most first-time buyers will not benefit from the stamp duty holiday, as they were already exempt from stamp duty on purchases of up to £300,000, many will benefit from lenders now starting to bring back first-time buyer mortgages for up to 90% of the purchase price. Lower-deposit lending helps to boost buyer activity on the all-important first rung of the ladder, which in turn helps to boost the numbers of second-steppers who are able to trade up, and so also enables others higher up the chain to move.”
What do we think?
We have seen a big upsurge in demand for property and for valuations since the stamp duty holiday, traditionally summer is always our busiest time so we are well prepared and eager to help people find their new dream home but we would advise that anyone wishing to take advantage of the savings think about taking action sooner rather than later, as it’s stated above, time flies and whilst we do all we can to assist a smooth process when buying or selling it can take time and March isn’t that far away. If you are thinking of moving why not give us a call now on 0117 907 3577 and see how we can help or answer any queries you may have.
Ashley Day, Bristol Property Centre