Average UK house price rises across all property types and regions for first time since before 2008 crash
10-26-2021
Average UK house price rises across all property types and regions for first time since before 2008 crash
London house prices saw the smallest increase in the country
Daniel Lynch
By Becky Barnes
House prices have risen across all regions and all sectors in the UK for the first time since March 2007, before the financial crash, according to new data released today.
Average asking prices are also up by 1.8 per cent — the highest percentage for this time of year since 2015 — despite the end of the stamp duty holiday, adding an average of £6,000 to homes across the country, according to Rightmove's latest house price index.
Experts say the housing market is strong because people are taking the opportunity to buy before mortgage interest rates potentially rise. They have also hailed 2021 “the year of the power buyer”, with those who have already sold their properties or have nothing to sell having the best negotiating hand to secure their ideal home.
More houses are coming to market compared to the summer, but Rightmove says it is not enough to satisfy strong autumn demand from buyers.
Rightmove’s Tim Bannister said: “Although more properties are coming to market, the level is still not enough to replenish the stock that’s being snapped up.
“Consequently, new price records have been set across the board, with every region of Great Britain and all of the three market sectors of first-time buyer, second-stepper and top of the ladder hitting all-time highs. This ‘full house’ is an extremely rare event, happening for the first time since March 2007.
"The stock shortages started after the first lockdown, and they look set to continue with the underlying housing market fundamentals remaining strong, and an additional incentive to buy and fix your mortgage interest rate before a widely expected rate rise.
"Mortgage interest rates are lower than they have ever been before and lenders are keen to lend in a competitive market, with employment and wage growth also robust.”
House prices in London
Asking prices in London rose just 2.6 per cent up year on year, the lowest annual price rise of all regions.
The 1.9 per cent monthly rise in London equates to an increase of £12,398 compared to September 2021.
Property prices in Wales are up 11.3 per cent year on year, 9.8 per cent in the south west of England and 8.6 per cent in the East Midlands.
The average asking price in London is £650,683 and a property takes 57 days on average to secure a buyer.
The outer boroughs of Bexley, Barking and Dagenham and Croydon have seen the biggest average asking price increases year on year, rising between five and six per cent.
House prices in London’s best locations at ‘turning point’
Average asking prices have dropped year on year in Lambeth (0.7 per cent), Hackney (0.4 per cent), Lewisham (one per cent), Hammersmith and Fulham (1.6 per cent), Southwark (1.8 per cent), Haringey (1.9 per cent), Ealing (2.1 per cent), Camden (3.7 per cent) and Islington (5.6 per cent).
How to beat the competition from other buyers
Nick Menzies, Dartford area partner for The Robinson Jackson Group estate agents advised home movers to sell their current home before buying.
"Not only does it put a home-mover in the strongest position, it also provides an accurate budget for what they can afford to buy.
“If someone sets out with £350,000 in their mind and achieves £375,000 for their property, they now have £25,000 more to spend. The extra money can really open up more homes for them to look at which they wouldn’t have considered affordable if they hadn’t gone to market and sold first.
"Also, if you don’t already have a sale agreed on your property, the level of current buyer activity means it’s likely that ‘the one’ for you has already had a lot of interest from buyers who may be in a better position to proceed quickly.”