Industry reaction to latest Rightmove House Price Index

Please see below for industry reaction to the the latest Rightmove House Price Index which shows that: –

●        Price of property coming to market rises by a relatively modest 0.8% (+£2,509) this month, though still the largest rise at this time of year since 2015, and prices are now at a record in all countries and regions of Britain

●        High prices combined with an all-time low in the number of available properties on agents’ books are starting to slow the market’s frenetic pace, with sales agreed in May 17% ahead of same period in 2019, slackening from April’s +45%

●        Top-of-the-ladder buyers are more insulated from mass-market’s increasingly stretched affordability:

●        Average prices up by £67,394 since March 2020 for properties in this sector (+12.3% compared to +7.5% for all properties)

●        The number of sales agreed on properties over £500,000 in May was 49% above the same period in 2019, despite buyers knowing they will miss the maximum stamp duty saving that comes to an end in June

●        Cash-rich relocators from more expensive areas also fuelling prices in fastest-growing regions:

●        Welsh prices up by 14.6% since March 2020, and also the highest jump in buyer demand, up by 44%

●        South West prices up by 11.4% with properties selling more quickly than ever recorded, resulting in fewest properties available for sale per estate agent of any region in England – just ten per agent branch

Director of Benham and Reeves, Marc von Grundherr, commented:

“A 0.8% rise in monthly price rises, whilst slower in pace than in recent months, is still almost 10% annually if such a trend were to continue. That’s colossal growth and even more so at the top end of the market where homes are seeing over 12% rises in value despite the fact they may soon miss out on the maximum stamp duty holiday saving of £15,000. This bodes well and may confound the doomsayers that have been forecasting a cliff edge come the end of June.”

Managing Director of Ascend Properties, Ged McPartlin, commented:

“Despite some southern regions finally starting to stir, the North continues to lead much of the market where annual house price growth is concerned. It’s probably not accurate to say that cash-rich relocators from southern cities are driving this northern resurgence and this strong performance has been very much built on a foundation of localised demand, from buyers keen to take advantage of record-low interest rates while they can.”

Managing Director of Barrows and Forrester, James Forrester, commented:

“Home sellers and their acting agents have never had it so good. Not only are transactions climbing along with house prices, but the speed at which properties are selling is extremely fast. Just 41 days to sell a home is close to an all-time best and means that at some extremes, listings have been selling before the ink is dry on the sales particulars.

Certainly in the West Midlands, we’re seeing contracts agreed within a week of listing and although it’s unclear as to how much longer the market can perform at this rate, there’s certainly no sign of it letting up anytime soon.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented:

“Property stock is evaporating at an alarming rate due to huge levels of buyer demand and this severe imbalance is causing an artificial property price boom. Great for sellers who can justify overpricing their home but not so great for the wider market that is already groaning under the pressure.”