Confidence is returning to the housing market for the first time in over 12 months and vendors face one of the best property selling prospects seen in several years, says Rightmove.
The portal’s monthly market report says a house price boom is in the offing as the Spring sales market approaches and that house prices are due to increase by 0.8% this month or by £2,589 per property, only £40 short of an all-time high.
Also, agreed sales are already up year-on-year by 12.3% and by 26.4% in London, and that increasing activity within the market will lead to a series further house price increases in the coming months as buyer demand outstrips the number of homes for sale.
“This means that spring buyers are likely to be faced with the highest average asking prices ever seen in Britain,” sales Rightmove’s housing market analyst Miles Shipside.
“Buyers who had been hesitating and waiting for the greater political certainty following the election outcome may be paying a higher price, but they can now jump into the spring market with renewed confidence.
“After three and a half years of Brexit uncertainty, dither, and delay, many now seem to have the 2020 vision that this is the year to satisfy their pent-up housing needs.”
This follows Rightmove’s bullish predictions in December that house prices are due to rise by 4% this year.
But Shipside (left) warns agents to temper vendors’ requests to increase their asking prices because the market recovery, with Brexit yet to happen, remaining fragile.
Lucian Cook, Head of Research at Savills, agrees: “It is clear that the market remains largely dictated by sentiment.
“Our own agents are reporting that the vast majority of buyers remain unwilling to increase their budgets.
“Accordingly, our advice remains that sellers need to remain pragmatic on price, particularly given some of the uncertainty around an impending budget, the first of the new Government.”