House price boom continues in March as buyer demand hits record levels
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Record levels of buyer demand pushed the average price of new properties coming to market up 0.8 per cent last month, new research shows.
According to Rightmove, the current excess of demand is the highest it has been for a decade, pushing prices up £2,484 in March.
The number of potential buyers enquiring about each available property in the month is at a record, and is 34 per cent higher than the same period a year ago, it added.
The price increase comes just as the housing market moves into its traditional spring selling period. Already in the first week of March the number of agreed sales is up 12 per cent on the same month last year.
Rightmove said that the combination of lockdown and more government incentives was driving the price rises.
Last week’s Budget saw Chancellor Rishi Sunak take the opportunity to extend the Stamp Duty waiver for another three months.
In addition, the Treasury introduced a new mortgage guarantee scheme covering up to 95 per cent of the value of mortgages.
Tim Bannister, Rightmove’s director of property data comments: “Concerns of a cliff edge for the housing market at the end of March have dissipated, partly due to the tax deadline extensions in all of the UK bar Scotland, but also because the already high level of buyer demand caused by the lockdowns has continued to surge since the start of the year.
“This demand will be further boosted from April by the new Government guarantees enabling lenders to bring back 5 per cent deposit mortgages.
“Whilst it is unfortunately not the perfect time to buy for some people who have been adversely affected by the pandemic, the record buyer demand measured by Rightmove indicates that now is the right time for many.”
Tomer Aboody, director of property lender MT Finance, said that the need for more space in lockdown was the main reason for the surge in sales.
“Buyer demand has dramatically increased over the past year due to the requirement for more space”, he said.
“Many Londoners have been looking for much larger pastures new, heading to the traditional commuter belts of Surrey, Hampshire, Sussex and Berkshire, and even further afield such as Norfolk.
“More space – both inside and out – combined with better of quality of life for the children is more than ever the number one priority for families. With lower-priced properties outside the capital, combined with low interest rates for those requiring mortgages, it is a win-win scenario.
“Demand is such that more stock is definitely needed, however. Hopefully the spring and summer sunshine will bring more properties to market, with many buyers waiting to pounce.”