New figures released by Home.co.uk have revealed soaring house prices and low ‘time on market’ as property shortage continues and Britain goes on a home buying frenzy.
With a reported 0.9% rise in house prices just this month, the average annualised rise in house prices now stands at 7.9%.
The widely-discussed UK property shortage is still the major driving force for that level of rise, with the number of properties coming to market nationally down 4% from last year’s figures. This figure worsens in the West Midlands (12%) and the South West (8%).
Property prices did see a small boost in the North and Wales, but these areas continue to have the longest average ‘time on market’, which means property price rises are significantly more modest that in other areas of the country and only small seasonal rises are expected. Supply in the North and Wales remains strong, which means demand is not driving property prices up in the same way as in areas where property is more scarce.
Danny Luke, Quick Move Now’s Managing Director, commented:
The national property shortage is still having a big impact on the property market as a whole, and driving prices upwards, as we can see in the figures released by Home.co.uk.
In the South East and East of England, where property supply remains very low and demand is high, average ‘time on market’ has fallen to just 47 and 49 days respectively – a level we’ve not seen since 2007.
The price hikes are great for those looking to sell a property, but short supply means a very competitive market for those looking to buy a property. As a company, we’ve seen a significant rise in the number of customers coming to us to secure a quick cash house sale in order to free them up and make them a chain-free buyer so they don’t lose out on their onward purchase due to chain delays or the sale of their property falling through.
We must also remind ourselves that whilst the national trend is a steep hike in property prices, this is not the case in all areas of the country. Property scarcity is a major driver in rising property prices, so areas in the North and Wales, which have relatively strong supply of property, are not seeing the same level of rise and are experiencing relatively moderate seasonal changes.
For a realistic idea of the property’s current value it is important to look at the local property market. Websites such as Rightmove and Zoopla can provide details of properties that have recently sold near you and provide a more accurate idea of local market conditions. It’s easy to get carried away by national headlines, but if your property is priced incorrectly you will struggle to find a buyer, no matter how competitive the market is.