The first half of 2021 has been the busiest year on record for the housing market, it has been revealed.
According to Rightmove, frenzied market activity has helped push the average asking price of a newly listed property to a new record for the fourth month in a row.
According to the Index of Property Listing website, the average asking price has risen by £21,389 to £338,447 in just six months.
Rightmove’s Tim Bannister said: ‘We anticipate that absolute sales numbers will be the highest we’ve seen in a month when the June data is released by HMRC.
‘This means that the first half of 2021 has seen a record number of moves compared to the first six months of any other year, driven by the pandemic’s side-effect of a renewed focus on the need to provide a home. ‘
Rightmove says frenzied activity helped push up average asset prices
He added: ‘This is one of the driving forces behind the new record average asset prices for four consecutive months.
Rightmove said that from mid-July to mid-July, prices rose 0.7 per cent – the equivalent of £2,374 and the biggest monthly increase at this time of year since July 2007, at the peak of the boom just before the financial crisis. .
Price data is based on RightMove’s asking prices, while data on sales numbers is a prediction of what the next HMRC transaction will show, based on RightMove data that rates properties as ‘under offer’ or ‘sold under contract’ is marked. ‘.
Rightmove attributed the shortfall to the supply of homes for sale and identified a shortfall of 225,000 homes for sale, which, if available, would help maintain a more normal level of stock of property for sale and stabilize prices. will help to do so.
This massive shortfall, coupled with frenzied buyer activity, is fueling record high prices and leading to a record drop in available stocks for sale.
According to Rightmove, despite the end of the stamp duty holiday, the high level of activity continues.
The stamp duty holiday, which ended on 30 June, saw no tax on the first £500,000 of the property purchase price until the end of September on the first £500,000. After that stamp duty is to be fully refunded.
Rightmove said the average price of a home in the UK is currently £338,447
Rightmove said there is an “urgent need” to recoup the short stock of assets for sale so that prices can return to stability.
This comes ahead of the latest transaction data from HMRC, which is to be published within a few days.
‘With the ongoing construction of new homes and the property being viewed as an asset to be held, many other forms of investment have also fueled demand with historically low returns.
‘The new stamp duty deadline for sales completed by the end of June in England and Wales has also helped clear the stock of assets for sale and concentrated activity.
‘This has left potential buyers with the lowest choice of homes for sale we’ve ever recorded, sustained price increases, and expanded affordability.’
Rightmove predicts the highest number of completed sales will be seen in a month
The average home price has increased by 0.7 percent from a month ago, to £2,374. Is equal to
Rightmove expects the number of sales in the first six months of the year to be around 800,000 and is due to be reported by HMRC later this week, surpassing the previous record of 795,000 set in 2007. can break.
The 2007 record was set under very different circumstances, at a time when mortgage lending norms were much less stringent than in today’s more regulated market.
The analysis shows that a decrease of 225,000 homes for sale is offset by 140,000 more agreed sales and 85,000 fewer new listings than the long-term — between 2014 and 2019 — average for the first half of a year.
The net result of this major imbalance between supply and demand is that the average number of properties available for sale per estate agency branch is at a new record low of 16 properties. This compares with the previous low of 25 of the assets before 2021 and the long-term average for this time of 31.
This is based on Rightmove data for the number of properties available on the site per agent on average.
Still in positive territory: Rightmove reveals monthly change in average asking prices
The biggest imbalance by far has been most notable in the more expensive segments of the market, with a surge in sales demand and supply.
Rightmove said detached homes with at least four bedrooms saw a 39 percent increase in the number of sales, and a 15 percent drop in the number of visits to the market compared to the first six months of 2019.
This huge jump has seen a 6.7 percent increase in average prices for the sector over the past six months.
Rightmove’s ‘second-stepper’ category – composed primarily of three-bedroom homes – has also seen a marked swing, with 29 per cent higher agreed sales and 10 per cent declining new listing numbers. The top price is the result of an average growth of 6.9 percent in the first half of the year.
Meanwhile, hard-hitting first-time buyers will find that their typical area of two bedrooms and less is in short supply by about 1 per cent as of 2019, just as in 2019. Their sales agreed numbers are also less encouraging, though still up 26 percent over the same period in 2019.
The stock’s shortfall is therefore less acute, and with prices rising marginally by 3.4 percent, it could be a relative buying opportunity for those looking to get on the asset ladder, Rightmove suggested.
Average time taken to secure a buyer has been reduced since the beginning of the year
Mr Bannister said: ‘First time buyers are currently benefiting from their area with the most buyer-friendly conditions. The choice is still more limited than in the same period in 2019, but the price increase is the most retarded of any segment.
‘Making a deposit is still very difficult, but 5 per cent is now an option, and with many rising rents, buying your home on a low deposit is again becoming an opportunity. There is also an opportunity for property owners to get into the market, as it is still a great sellers market despite the recent end of the tax holiday in Wales and its scaling back in England.
‘We’ve also seen a much more efficient housing market over the past year, with strong buyer demand and rapid churning of homes leading to a much higher percentage of sellers finding buyers for their homes, and taking back homes that sell less. He is going. Market.
‘Buyer sentiment remains strong, and the increase in new homes with longer occupants and changing housing needs is driving the shortage of long-term housing stock.’
Estate agents confirmed the high level of activity in the market and lack of properties for sale.
Rob Sabin of estate agent Miles & Barr said: ‘East Kent’s property market remains very active during the first six months of 2021, with buyers continuing to purchase limited housing stock.
‘The number of sellers entering the market has slowed as the year progressed, which means we have seen the level of new listings coming into the market drop significantly year over year, while the total available stock in the market remains at the level. . The lowest we’ve seen in years.
‘While the number of new listings has declined, our results remained strong and 945 homes were listed for accepting an offer. East Kent has seen the number of buyers wanting to relocate either to rural areas or from the coast, with a fifth of registered applicants coming from Greater London.
Mark von Grundar of property agents Benham & Reeves said: ‘As the UK property market continues to defy expectations, home prices have hit another record high as a result of the tapered stamp duty holiday deadline. Despite the fall in prices.
“There is no doubt that the stamp duty holiday has been the catalyst for this impressive market performance. However, this is not the driving factor behind buying intent for UK homebuyers and hence will continue to have a strong level of activity even after this period ends.
‘When you couple that with the severe shortage of stocks buoyed demand, it is very likely that property values will remain bullish for the remainder of the year 2021. Buyer frenzy reveals a reduction in the number of homes for sale by 225,000.