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House prices soar £1,509 in MONTH – but there are still ways to buy a home


01-19-2016

January is the cruelest month for people buying a home - as asking prices soar an incredible £1,509 in a matter of weeks. But don't give up just yet

PA For sale signs
House prices are soaring - but don't give up just yet

House-sellers' asking prices jumped by £1,500 in January amid signs that the market is in for a buoyant year, a property website has reported.

A 0.5% or £1,509 month-on-month increase in the price of property coming on to the market took the average asking price to £290,963 across England and Wales, Rightmove said.

There were also some positive signs for people trying to take their first step on the property ladder, as they may find they have a wider choice of properties compared with January 2015.

The report said there has been a 6.6% year-on-year increase in the number of fresh-to-the-market homes in first-time buyers' target sector of homes with two bedrooms or fewer.

The increased supply may also provide some encouragement for buy-to-let investors who are looking to snap up properties before a stamp duty hike comes into force in April.

From April 1, people buying additional properties, such as buy-to-let properties and second homes, will pay an extra three percentage points above current stamp duty rates.

Rightmove said there are already early signs of strong demand for homes this year, with the number of visits to its website in the first working week of January up by 21% compared with a year earlier.

Miles Shipside, director of Rightmove, said: "In this stock-starved era it will come as a relief to first-time buyers that their negotiating power may already be improving because of the forthcoming tax changes (for buy-to-let investors), and there is a window of greater choice as more owners of smaller properties try to sell.

"Rather than waiting until later in the year, having a good look around now while choice is up and interest rates remain unchanged could get you on to the ladder sooner and at an acceptable price."

Every region across England recorded higher average asking prices in January 2016 compared with January 2015.

The East of England saw the biggest annual increase, with asking prices up by 9.8% compared with a year ago, reaching £312,921 on average. London saw the next biggest annual rise, with asking prices up by 7.8% on a year ago to reach £610,741 typically.

Yorkshire and the Humber saw the smallest annual increase in asking prices in regions across England, with a 2.8% increase, which took the average asking price there to £165,722.

Meanwhile, in Wales, asking prices were down by 0.5% annually, at £166,051 on average.

www.mirror.co.uk

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