Average Asking Prices For UK Homes Rocket To Record Highs
The latest data from Rightmove shows the average asking price for homes reached an astounding £323,530 at the beginning of October 2020 – a 5.5% annual rise and the strongest since 2016 according to Savills.
The speed of movement within the property market has also seen a dramatic shift. The time taken to sell a home has dropped says the online estate agent. It took on average just 50 days to sell a home in October, 12 days less than the same period last year.
These record levels are a result of the housing market reopening back in May and the current stamp duty holiday which was introduced by the chancellor back in July on all property purchases of up to half a million pounds.
In addition to this, there has also been a swift change in home-buyer behaviour since lockdown. After seven months of government lockdown restrictions, many buyers are now looking to move away from big city living and into more open spaces – a movement coined as the ‘race for space’.
“Buyers are planning for a new work-life balance built around less commuting and seek more green space, fresh air and better value” said Jonathan Hopper, chief executive of Garrington Property Finders.
Many believe the recent figures have enabled the property market to claw back its losses earlier this year when property prices dropped shortly after the government announced its measures to tackle COVID-19.
“House prices have now reversed the losses recorded in May and June and are now at a record high” said Nationwide’s Chief Economist Robert Gardner.
This is welcome news to the property-backed peer-to-peer industry which endured a difficult second quarter before the property market and construction sites resumed activity back in May.
A recent RICS survey has also revealed that in September 76% of surveyors reported rising levels of new buyer enquiries while data from The Bank of England reported a 13 year high for the number of mortgage approvals for the same period.
Investors in North West peer-to-peer property can take further confidence by Rightmove’s data which shows the North West as one of the stand out performers within the UK’s property resurgence. The area has seen an annual house price growth of 7% – one of the highest performing regions within the UK.
There are however signs to suggest this mini-boom will hit an inevitable ceiling when the government’s job retention scheme comes to an end and unemployment levels spike. But what the data does show is that the property market is very much alive despite being in the middle of one of the biggest recessions in history. It shows that the property market is responsive to government measures designed to stimulate activity and growth. This should give us all much optimism, particularly for those invested in UK peer-to-peer lending, for its continued revival over the coming months.