Asking prices in Great Britain hit new record
It’s been a busy year for the housing market so far. With so many people looking to move, we’ve seen asking prices across Great Britain hit new records in each of the last four months.
The national average asking price is now £367,501, up by £7,400 since last month, while in London, it’s now above £689,000. You can check asking prices in your region here.
We haven’t seen this level of price growth at this time of year since May 2014.
Why do house prices keep rising?
Average asking prices are rising because we’re continuing to see strong demand from buyers, at a time when there aren’t enough homes on the market.
This asking price growth is set against a backdrop of interest rate rises and the increasing cost of living. Yet these increases don’t seem to be dampening home-buyers’ eagerness to move, for the moment at least.
The number of people contacting estate agents wanting to view properties is up 31% compared to the same period in the last ‘normal’ housing market of 2019, before the pandemic began.
Our property expert, Tim Bannister, says: “People may be wondering why the housing market is seemingly running in the opposite direction to the wider economy at the moment. Our data shows that those who have the ability to do so are prioritising their home and moving, and the imbalance between supply and demand is supporting rising prices.”
Our housing market forecast for 2022
Are more homes coming onto the market?
We’ve seen a small increase in the average number of homes each estate agent has for sale since the start of the year, meaning buyers are slowly but surely being offered greater choice when searching for their next home.
John O’Malley of estate agent Pacitti Jones in Glasgow, says: “Whilst frenzied buyer activity has calmed down, the market is definitely holding strong and we are now seeing higher volumes of vendors feeling more comfortable about putting their property on the market before making an offer on another.”
If you’re thinking of moving and have a property to sell, the advice from estate agents is to put your home on the market, as many sellers will choose buyers with sales already agreed.
How to get your home ready to sell
Will house prices keep rising?
There are signs that the pace of the market may be beginning to slow down, albeit gradually.
Strong demand from buyers and the lack of homes for sale has contributed to the continued price growth this year. More people deciding to put their homes on the market, coupled with affordability concerns from home-movers, is likely to mean that competition between buyers will ease through the second half of the year.
Tim, our property expert, says: “We anticipate that the effects of the increased cost of living and rising interest rates will filter through to the market later in the year. And a combination of more supply of homes, and people weighing up what they can afford, will help to moderate the market.”
READ MORE: How has the housing market changed in 2022?
The header image for this article is provided courtesy of Strutt & Parker, St Albans
