UK house prices are expected to continue at record-breaking levels for some time, a property expert has predicted. Newly-released statistics show the average price-tag of a home has rocketed by nearly £8,000 in the space of a month.
Rightmove, which compiled the data, says London has seen a particularly big jump in homebuyer enquiries. But Jonathan Rolande, from the National Association of Property Buyers, says demand is soaring in all regions.
“Whether you look north, south, east or west, the situation is the same – prices are continuing to soar,” he said. “I don’t expect that to change any time soon. We should expect many months of rises before things start to level out.”
Lack of supply
Mr Rolande, also the founder of House Buy Fast, added, “Right now many owners are therefore sitting and waiting and there is a huge lack of supply in the market. That’s the really big issue.
“Where people are selling they are increasingly looking to rent while they find their dream home. And that is driving rental prices to fresh highs as well. When you throw in the cost of living crisis it means many households face a hard spring.”
Rightmove analysts say the £7,785 jump this February is the biggest month-on-month increase in cash terms it has recorded in more than 20 years of reporting.
It means the average asking price across Britain now stands at a record £348,804 – a rise of nearly £40,000 in the two years since the pandemic started, compared with just over £9,000 in the previous two years.
Asking prices nearly 10% higher
The average asking price for a home is 9.5% higher than a year ago, marking the highest annual rate of growth since September 2014, Rightmove said. Rightmove said February’s price growth is being driven by the ‘second steppers’ – buyers who find themselves in need of more space and are now ready to move on from their first homes. As some workers are being encouraged to return to the office, London has seen a particularly big jump in home buyer enquiries, according to Rightmove.
Buyer demand generally is 16% higher than at this time in 2021. Scotland saw the biggest monthly increase in February, with a 7.5% price rise to an average price of £174,567. The regions with the lowest increase were the East Midlands and South-West, both of which saw prices rise by 0.4%.