Britain gets moving
Wed, Jul 22, 2020
Unexpected mini-boomThis month's Rightmove House Price Index report shows the average asking price of property coming to market in Britain has hit a record 2.4% (+£7,640) - higher than in March pre-lockdown, and the 3.7% annual rate of increase is the highest since December 2016.
- Year-on-year buyer enquiries up 75% in Britain since the start of July
- 44% of new listings that came up for sale in the first month after the English market opened on 13th May have already been marked as sale agreed, compared to 34% for the equivalent dates last year
- Number of monthly sales agreed is up 15% in England on last year, and in the five days after the stamp duty announcement it jumped to 35% up on the same days a year ago
- Total available stock has now recovered to being just 13% down in Great Britain, and the stamp duty holiday may encourage more to market to ensure they have plenty of time to move before the March deadline
- Further boost to market activity – and especially for first-time buyers – with more low deposit mortgages available for up to 90% of the purchase price
The average price of property coming to market is £320,265 this month, up by an average of 2.4% (+£7,640) compared to March before the housing market was put on hold. The price of property coming to market is an accurate early indicator of demand, evidenced by unique buyer enquiries currently being up by 75% so far this month compared to the same period a year ago. The number of sales being agreed so far this month is also exceeding the prior year’s figures in all three nations.
Current activity levels clearly show that Britain is getting moving again, with the number of properties coming to market up by 11.1% this month compared to a year ago. The market is now in full flow with 40,741 (44%) of the 92,085 newly listed properties in the first month after the English market reopened having already found a buyer, compared to 34% for the equivalent dates last year. The stamp duty holidays, which are now expected to run until 31st March in all regions of the UK, are a further incentive to come to market now.
The immediate effect of the stamp duty cut in England has been to amplify the buyer surge. The number of sales agreed in the five days after the announcement (between the 8th and 12th July) was up by 35% on the same days a year ago. This is significantly higher than the 15% increase in sales agreed numbers in England measured in the month of June before the announcement.