The Rightmove House Price Index was released to the media this week and gives a national picture of house prices and activity over the past few weeks. For lettings, the quarterly Rental Trends Tracker released last week gives an insight into what we've seen in the rental market over the last quarter.
Here are some key facts:
2021 buyer frenzy reveals 225,000 shortfall in number of homes for sale
- Busiest ever first half of a year pushes average price of property coming to market to a new record high for fourth consecutive month, and £21,389 higher (+6.7%) in just six months
- With the first half of 2021 seeing 140,000 more sales being agreed and 85,000 fewer new listings than the long- term average, this surge in activity has revealed a shortfall of 225,000 homes for sale which, if available, would have corrected this stark imbalance between supply and demand, and would have stabilised price growth:
- Homes with four beds and more facing biggest imbalance with 39% surge in sales and 15% fall in numbers coming to market versus 2019, resulting in an average price hike of 6.7% in the last six months
- Mass-market three bed sector sees 28% jump in sales while suffering 10% drop in new supply versus 2019, with prices jumping up by 6.9% so far in 2021
- First-time buyers faring best as sector of two beds and fewer has unchanged new seller numbers with sales up by a slightly smaller 26%, resulting in a smaller average price rise of 3.4% for the half year
With the ongoing need for housing, high activity levels despite the June stamp duty deadline now passing, and with residential property prices appreciating better than many other asset classes, we expect positive sentiment to continue.
Average rents hit a record £1,000 & city centres start to recover
- National asking rents outside London have reached another record, and are now over £1,000 per calendar month for the first time:
- Asking rents are 2.6% higher now than in Q1 2021 and 6.2% higher than this time last year, the biggest quarterly and annual jumps ever recorded by Rightmove
- London is the only region with rents lower than this time last year, though rents in the capital have increased this quarter for the first time since before the pandemic
- Asking rents in city centres around Britain are starting to recover as more renters plan a city move, with eight out of ten of some of the biggest city centres seeing higher rents than in June 2020
Rental properties are finding a tenant quicker than ever before at an average of 21 days, and the fast-paced market has led to an annual drop of 36% in the number of available rental properties.
These are figures that we can certainly corroborate from our own, more local experience. Buyer demand is still high, with fewer properties now coming to the sales market and tenant demand remains high with what apperas to be a perpetual shortfall of lettings properties.
If you are considering selling or letting your property then please do not hesitate to contact us to arrange your free, no obligation sales or rental appraisal ... we may well have your buyer or tenant waiting on our books.