The latest House Price Index from Rightmove recently released shows prices have continued to increase and selling times have dropped. However, buyers and sellers have been warned this could cause sales to fall through.
The average property price has increased 1.1% and now sits at £372,324. This is only £570 short of a record high from May last year.
This is driven largely by "top of the ladder" properties, like large family homes, as these now cost an average of £682,661 - up more than £18,000 on March 2023.
Both buyers and sellers have increased activity and houses are selling more quickly than before.
Speaking on the report, co-founder of Home Sale Pack Ruth Beeton said "as buyer demand continues to climb, so too has the asking price expectations of the nation’s sellers. However, the real positive to take is that, at 64 days on average, homes are selling at their fastest since November, indicating just how much buyer appetites have improved. In fact, the average home is selling 18% faster than in January alone and that is the factor to watch here as faster sales mean even higher prices in the coming months."
However, the expert warned faster selling prices could mean there is a higher risk of sales falling through and she urged buyers and sellers to be wary of this.
Ruth continued "the downside is it also means an increased chance of fall throughs as the industry struggles to cope with the increasing strain placed on the archaic conveyancing process, in particular.”
Rightmove’s director of property science Tim Bannister weighed in on the research stating “the top of the ladder sector continues to drive pricing activity at the start of the year, with movers in this sector typically less sensitive to higher mortgage rates, and more equity rich, contributing to their ability to move. While some buyers, across all sectors, will feel that their affordability has improved compared to last year due to wage growth and stable house prices, others will be more impacted by cost-of-living challenges and stickier than expected high mortgage rates.
Despite these factors, it has been a positive start to the year in comparison to the more muted start to 2023. However, agents report that the market remains very price-sensitive, and despite the current optimism, these are not the conditions to support substantial price growth. Sellers who are keen to secure their sale will still need to price realistically for their local market and avoid being overambitious at the start of marketing to give themselves the best chance of finding a buyer.”
This comes as a property expert shares advice for those looking to sell. He explained simple DIY updates can boost the value of your home.
How is Buy To Let Performing in 2024?
A comprehensive new survey gives the lowdown on buy to let in the UK.
The study, by Uswitch, is lengthy and covers buy to let landlord sentiment, mortgages and financial positions, plus short letting.
Some highlights include:
- In 2023, more than 83,000 buy-to-let mortgages were approved by UK lenders, and occupied 7.5% of total mortgage lending for the year;
- Consumer buy-to-let mortgages in 2023 are valued at approximately £24.4 billion;
- Buy-to-let mortgages were responsible for 7.5% of the total gross mortgage advances in Q3 2023;
- 500 buy-to-let mortgaged properties were taken into possession during Q2 2023 – a rise of 11% from the previous quarter;
- Buy-to-let mortgage advances were valued at £4.7 billion for Q3 2023 – 10% more than the previous quarter but 57% less than the same time in 2022;
- Lloyds is the company with the largest share of the UK mortgage industry, occupying just under 17% of the market;
- Around a third (30%) of landlords claimed they intend to sell a property within the next 12 months in Q4 2023;
- The average loan value on a buy-to-let property purchase was just below £158,500 in March 2024 – a rise of 6% from the previous month;
- London has the highest average buy-to-let loan value of any region in the UK. The average value of a buy-to-let loan for a new property purchase in the capital stood at £272,052 in March 2024 – almost a third (30%) more than any other region.
It’s a lengthy and detailed report and it’s been prepared by Claire Flynn of Uswitch.
You can see it in full here.