The average price of a property coming to market in the UK has reached a record high, rising by 0.3 per cent (£1,091) in September to £338,462, according to figures from Rightmove. However, this new record is only £15 higher than the previous record set in July, which Ruighmove say is a sign of the market stabilising.
Reuters reports that while buyer demand remains strong, it has been tempered by increasingly stretched buyer affordability, the removal of the stamp duty holiday incentive, and the annual lull in the market due to the summer holidays, as well as sluggish growth in London.
Outside of London, the rest of the UK has seen an eight per cent annual price growth. Greater London has seen a better supply of homes for sale than the rest of the UK, which has contributed to its 0.8 per cent growth.
In the first two weeks of September, the number of new listings is up by 14 per cent compared to the last two weeks of August.
Wider availability of properties has encouraged current homeowners to come to market if they are looking for an onward purchase, and this greater liquidity has become another factor in the easing of upwards price pressure.
Tim Bannister, director of property data at Rightmove, said: “While the holiday-starved took their break over summer, the high ratio of buyer demand to properties for sale means that the property market remains stock starved despite the summer lull lessening overall activity.”
He explained that there competition between buyers to secure their next home is double what it was in September 2019, and to get ahead of the competition, you need to have greater buying power than everyone else.
It would traditionally mean that people would need ‘deeper pockets’ to be able to outbid other buyers, but in the most competitive market ever, the ‘power buyers’ of today will also need to have found a buyer for their own property or not need to sell at all.
“Agents report that buyers who have yet to sell are being out-muscled by buyers who have already sold subject to contract. Proof that you are mortgage-ready or can splash the cash without needing a mortgage will also help you to get the pick of the housing crop, “ Bannister added.
He said that the 14 per cent increase in the number of new sellers coming to market in the first half of September is only an ‘early snapshot’, but with autumn being a traditionally busy person, as people who have been hesitant so far often see the months leading up to Christmas as an opportunity to get plans underway.
He also said that the frantic pace of the market in 2021 may have deterred some potential movers, but now there are signs of a return to normality.
However, he wanted that it is still a strong sellers’ market, so house hunters need to do all they can to maximise their appeal to sellers, who may already have several offers and will likely choose the one that provides the best chance of a quick sale.
“Agents are reporting that the most successful buyers are using tactics such as ‘sell before you buy’ to increase their buying power in this competitive market,” he said.
“Estate agents know the best methods for movers to secure their ideal properties, so it’s well worth discussing your options with them.”
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