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Bidding war frenzy drives up final offers to record levels

Latest data from Rightmove shows homes achieving 98% of asking price and in some regions 45% of homes are selling for more than asking price.

Nigel Lewis

hunters rightmove asking price

More than a third of homes achieved their final asking price or above in January, the highest percentage ever recorded by Rightmove, confirming agents’ reports of widespread buyer bidding wars.

The latest available Land Registry data of more than 12 million house sales in England and Wales reveals this was significantly higher than the long-term average of 23% between 2005 and 2021 and tops the last record set back in May 2016, when 36% of homes sold for asking price or above.

The frenetic market has led to buyers paying an average of 98.1% of the final asking price, the first time it’s risen above 98%. Yorkshire & the Humber recorded the highest percentage of any region, with 45% of properties being sold for the asking price or more, followed by the North West with 41%.

While 37% of homes achieved their asking price, 18% sold for over that in January, which is the same as the previous high in May 2016; the long-term average is 10%. Rightmove reports that there has been anecdotal evidence of a number of homes going to ‘best and final offers’, while asking prices have hit a national high of £336,073.

Marc von Grundherr (pictured), director of Benham & Reeves in London, says it’s little wonder that such a large proportion of home sales are hitting these heights given that the stamp duty holiday and pent-up demand has led to a 50% hike in buyer demand and therefore transactions.

He adds: “Parts of Britain are seeing double-digit growth in home values and I suspect that there’s more of that to come especially as Rightmove’s numbers show that London and the South East are now awakening from being somewhat behind other regions up until now. A continuing strong economic recovery, low unemployment and interest rates that are barely positive will contribute to further positive data in the coming months.”

Read more about the booming market.

 

June 25, 2021

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