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The property sector is responding to the Rightmove House Price Index

Vaseline 2 months ago

The average asking price of properties coming onto the market has reached a near record high this month, the latest figure from Rightmove shows, but the market remains price sensitive.

There are more sellers wanting to come to market and this has resulted in an increase in the number of sales agreed; Good news for real estate agents.

The UK housing market continues its spring revival as asking prices rise again – Property Industry Eye

Industry responses:

Tom Bill, head of UK residential research at Knight Frank, said: “Buyers and sellers have faced mixed messages in 2024 as interest rate forecasts have fluctuated. While rising asking prices show that seller expectations have improved, there is broader downward pressure on prices as mortgage rates rise, supply increases and a wave of people abandon fixed-rate mortgages agreed in early 2022 below 2% .

“The result is more friction around prices, especially when a rate cut seems to be moving closer with each release of economic data. That said, increased supply means there should be a recognizable spring rebound in the housing market.”

Nathan Emerson, CEO of Propertymark, stated: “As many buyers and sellers are keen to start purchasing their next dream home at a better time of year, they can do so in the knowledge that their homes will rise in value again, despite interest rates rising in the future. remain the same. to stabilize the economy after rising inflation.

“People are showing a pragmatic attitude to current market conditions and our own Housing Insight Reports are a key indication of how positive the market is starting to look, with an 18 percent increase in the number of new homes coming onto the market. According to the Bank of England’s Money and Credit report, refinancing approvals have also increased, from 30,900 to 37,700 since February. So if you want to buy your next home, now is the best time to do it.”

Marc von Grundherr, director of Benham and Reeves, commented: “In terms of the housing market, spring has sprung, with growing buyer demand prompting sellers to raise asking prices to near-record levels.

“As the rate of inflation slows and market uncertainty diminishes, the real estate market, as always, responds with upward price movements.

“In addition, wage growth is now outpacing both consumer inflation and house price growth, effectively improving housing price affordability for the first time in years.”

Ruth Beeton, co-founder of Home Sale Pack, said: “As buyer demand continues to rise, the asking price expectations of sellers in the country are also rising. The real positive, however, is that with an average period of 64 days, homes are selling at their fastest pace since November, showing how much buyer appetite has improved.

“In fact, the average home is selling 18% faster than in January alone and that’s the factor we need to pay attention to here as faster sales mean even higher prices in the coming months. The downside, however, is that it also means a greater chance of failure as the sector struggles to cope with the increasing pressure placed on the archaic transport process in particular.”

Jason Harris-Cohen, CEO of Open Property Group, commented: “’Optimism reigns as salespeople shake off any hint of election jitters and throw caution to the wind with near-record levels of enthusiasm.’

“It is interesting to see that the highest end of the UK property market is reacting most aggressively to this month’s house price figures, with the biggest increase in asking prices in a decade.

“For those on the higher rungs of the right ladder, it has seemingly never been a better time to sell. The challenge will obviously be their ability to secure a buyer as such strong price growth means this level of the housing market has become just that little bit more out of reach for those looking to achieve it.”

The British housing market continues its spring rebound as asking prices rise again