Asking prices for UK homes rise in unison for 1st time in 14 years

[MonsieurCopperCrutch]

Asking prices for UK homes rise in unison for 1st time in 14 years
 

LONDON (Reuters) - Asking prices across all regions and segments of Britain’s housing market rose in unison for the first time since 2007 as buyer demand once again outstripped homes coming onto the market, a survey showed on Monday.

Real estate website Rightmove reported price rises for homes typically sought by first- and second-time buyers and for bigger properties with five bedrooms or more in all regions in its survey which covered the period between Sept. 12 and Oct. 9.

Average asking prices rose by 1.8% from a month earlier, the biggest jump at this time of year since 2015, to reach a record high of 344,445 pounds ($473,922).

The number of prospective buyers per property more than doubled compared with pre-pandemic levels.

“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,” Tim Bannister, Rightmove’s director of property data, said.

 

The Bank of England is expected to raise interest rates for the first time since the start of the pandemic either later this year or early in 2022.

The survey chimed with other signs that the housing market has remained strong despite the gradual withdrawal of a temporary tax break on property purchases.

Finance minister Rishi Sunak cut stamp duty, a tax on house purchases, in July 2020 as part of his emergency measures to help the economy withstand the pandemic.

In July it started to return to its normal level and the tax break fully expired last month.

 

Another driver of the housing market has been demand for more space for increased working from home, a factor which has led to big price rises in other countries too.

Asking prices rose in monthly terms by the most in Wales and the north west of England, up by 2.3%, and by the least in the east of England, rising by 0.1%.

[danlee74]

Could someone please update and republish the delusion index?

[PeanutButter]

I got our place valued this time last year. I could add 50k onto asking now and get it.

There's nothing for sale, if you want a house you pay what they're asking or do without. 

[btl_hater]

5 minutes ago, PeanutButter said:

I got our place valued this time last year. I could add 50k onto asking now and get it.

There's nothing for sale, if you want a house you pay what they're asking or do without. 

I can second the “nothing for sale” remark. Based on my search all that’s available is overpriced dross. If you’re lucky you might get a decent probate house come up.

[PeanutButter]

1 minute ago, btl_hater said:

I can second the “nothing for sale” remark. Based on my search all that’s available is overpriced dross. If you’re lucky you might get a decent probate house come up.

If you're lucky you might be one of the first 5 people to ring and get a viewing. My brother in law tried to view a place and was told he was bottom of the list of 30 prospective buyers. Good times for agents.

Anyone know if RM releases 'days on market before going SSTC' data? 

[winkie]

10 minutes ago, PeanutButter said:

I got our place valued this time last year. I could add 50k onto asking now and get it.

There's nothing for sale, if you want a house you pay what they're asking or do without. 

But asking or even getting doesn't mean you are any better off than you were last year....

[Smiley George]

4 minutes ago, btl_hater said:

I can second the “nothing for sale” remark. Based on my search all that’s available is overpriced dross. If you’re lucky you might get a decent probate house come up.

Been like this for months now round our way. There was a brief uptick in the summer with quite a couple of sales falling through after the end of the first stamp duty holiday. But as you say, decent stuff comes on and is sold with in days, people holding out for a lottery win on some sh*thole are not selling.

This is another consequence of that idiot Sunak's SDLT holiday, he managed to pull forward a load of demand and now everyone that wanted to buy/sell over next year or so has already done so and we're left in this no-mans land.

Massively depressing.

[quilan]

6 minutes ago, PeanutButter said:

If you're lucky you might be one of the first 5 people to ring and get a viewing. My brother in law tried to view a place and was told he was bottom of the list of 30 prospective buyers. Good times for agents.

Anyone know if RM releases 'days on market before going SSTC' data? 

This is definitely still happening. There has been no let up where I've been looking. Only the crappiest dross isn't selling. The good stuff is going to open days and sealed bids and desperate people are overbidding. 

[PeanutButter]

5 minutes ago, winkie said:

But asking or even getting doesn't mean you are any better off than you were last year....

Which is why I'm currently drinking a coffee at my desk instead of frolicking in the Bahamas. 

[winkie]

8 minutes ago, PeanutButter said:

If you're lucky you might be one of the first 5 people to ring and get a viewing. My brother in law tried to view a place and was told he was bottom of the list of 30 prospective buyers. Good times for agents.

Anyone know if RM releases 'days on market before going SSTC' data? 

Not a good time for agents if they are not selling anything.....because there is nothing to sell, nobody wants or needs to sell, or asking prices are too high to sell.

[PeanutButter]

Just now, quilan said:

This is definitely still happening. There has been no let up where I've been looking. Only the crappiest dross isn't selling. The good stuff is going to open days and sealed bids and desperate people are overbidding. 

The only advice I can offer is to keep in with all the agents, even on places that have gone SSTC because in the last 2 weeks I have seen 2 places come back to market (broken chains?) and a friendly agent could give you a heads up when that happens. 

[TheCountOfNowhere]

They've gone full on lying propaganda mode now

 

 

[rantnrave]

'Last time this happened was March 2007'. Over the next 12-18 months, this level of price rises of course levelled off and reached a plateau. What followed was a really dull period of static prices...

Alternative take on the data - with so little stock coming to market, EAs are falling over themselves to overvalue the most in order to win instructions. This is, after all, an index of initial asking prices.

[jonb2]

10 hours ago, MonsieurCopperCrutch said:

Asking prices for UK homes rise in unison for 1st time in 14 years
 

LONDON (Reuters) - Asking prices across all regions and segments of Britain’s housing market rose in unison for the first time since 2007 as buyer demand once again outstripped homes coming onto the market, a survey showed on Monday.

Real estate website Rightmove reported price rises for homes typically sought by first- and second-time buyers and for bigger properties with five bedrooms or more in all regions in its survey which covered the period between Sept. 12 and Oct. 9.

Average asking prices rose by 1.8% from a month earlier, the biggest jump at this time of year since 2015, to reach a record high of 344,445 pounds ($473,922).

The number of prospective buyers per property more than doubled compared with pre-pandemic levels.

“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,” Tim Bannister, Rightmove’s director of property data, said.

 

The Bank of England is expected to raise interest rates for the first time since the start of the pandemic either later this year or early in 2022.

The survey chimed with other signs that the housing market has remained strong despite the gradual withdrawal of a temporary tax break on property purchases.

Finance minister Rishi Sunak cut stamp duty, a tax on house purchases, in July 2020 as part of his emergency measures to help the economy withstand the pandemic.

In July it started to return to its normal level and the tax break fully expired last month.

 

Another driver of the housing market has been demand for more space for increased working from home, a factor which has led to big price rises in other countries too.

Asking prices rose in monthly terms by the most in Wales and the north west of England, up by 2.3%, and by the least in the east of England, rising by 0.1%.

 

Ah, I've finally got it. So that's is what this so-called government meant by "levelling up".

 

[MonsieurCopperCrutch]

I thought we were assured from some on here that as soon as the stamp duty holiday ended all this nonsense would be over. Little coming to market in our village and even the dross is selling, albeit a week or so later. 

[nome]

23 hours ago, btl_hater said:

I can second the “nothing for sale” remark. Based on my search all that’s available is overpriced dross. If you’re lucky you might get a decent probate house come up.

In my experience probate houses are the very epitome of overpriced dross, with the most stubborn, greedy and deluded vendors of all.

[Pop321]

5 hours ago, MonsieurCopperCrutch said:

I thought we were assured from some on here that as soon as the stamp duty holiday ended all this nonsense would be over. Little coming to market in our village and even the dross is selling, albeit a week or so later. 

There’s never an assurance rather just educated best guesses. I have seen some really bad purchases…..stuff that I know could financially set back someone 15 years even if the market just softens (never mind falls)….and I have also seen some ‘reasonable value purchases’. 

This was the same in other booms including the massive late 80’s increases. Houses (dross) asking far too much and the euphoria carrying them over the line and people left in a awful place for years.

All I can say in this market is if someone must buy then do massive research, understand the area, look at square footage, determine the condition (not just decor) of the place and try get some value if possible. And most importantly buy something you know with as much certainty as possible you buy somewhere that will do you for ever changing circumstances eg marriage, kids, change of jobs etc. The last thing people need is to buy a little flat hoping to sell it in a few years to step up to something bigger….

I think we all know where this ends but it’s a question of degree and when. The key for me is that regardless of whether we see a large scale fall in the stats or a general softening that some have overpaid for the dross.

 

[Zzzzzzzzzzzzzzzzzzzzzzzzzz]

6 hours ago, MonsieurCopperCrutch said:

I thought we were assured from some on here that as soon as the stamp duty holiday ended all this nonsense would be over. Little coming to market in our village and even the dross is selling, albeit a week or so later. 

Good God the stamp duty holiday ended all of... 19 days ago! 

[winkie]

27 minutes ago, Pop321 said:

There’s never an assurance rather just educated best guesses. I have seen some really bad purchases…..stuff that I know could financially set back someone 15 years even if the market just softens (never mind falls)….and I have also seen some ‘reasonable value purchases’. 

This was the same in other booms including the massive late 80’s increases. Houses (dross) asking far too much and the euphoria carrying them over the line and people left in a awful place for years.

All I can say in this market is if someone must buy then do massive research, understand the area, look at square footage, determine the condition (not just decor) of the place and try get some value if possible. And most importantly buy something you know with as much certainty as possible you buy somewhere that will do you for ever changing circumstances eg marriage, kids, change of jobs etc. The last thing people need is to buy a little flat hoping to sell it in a few years to step up to something bigger….

I think we all know where this ends but it’s a question of degree and when. The key for me is that regardless of whether we see a large scale fall in the stats or a general softening that some have overpaid for the dross.

 

Wise words.......now is the time where it is so important if going to buy, to buy the right property in the right place.....better not to buy anything than to buy the wrong place at the wrong price.

[hotblack42]

We bought a wrecked bungalow for £220k a year ago.  About £90k to renovate & improve including office & utility in outhouse.  Comparable bungalow just gone SSTC, asking was £450k.

I hate to say it as a long standing HPCer, but the market is permanently rigged.  It'll crash eventually,  but then people will storm in & push it up again.

Very happy to be told I'm wrong providing you give a detailed, credible explanation.

[petetong]

It's already slowed down by me, up north. 5 semi's on the market in one of best area in town, would have all sold within a week or two a matter of a month ago, only the cheapest by 10-15% has sold after 4 weeks. 

Edited October 19, 2021 by petetong

[Pop321]

1 hour ago, nome said:

In my experience probate houses are the very epitome of overpriced dross, with the most stubborn, greedy and deluded vendors of all.

You are spot on. Some shockers that I have seen over 30 years with bickering siblings asking 10/20/30% over comparables. Some get lucky if it’s in a nice spot and a bungalow with someone moving down market with more money than sense. 

I bought a bungalow that had been on the market for 18 months despite strong demand but it was laughably overpriced and knackered. In the end one of the siblings became very ill…brought it home to them all and then they just wanted rid.

It was an awful lesson for them to learn that 18 months of squabbling had cost them time, for one of them very precious time and the market had softened too.

What made matters worse was I made a fairly unreasonable offer but hey, that’s the market…took them a month to accept. I nearly dropped my offer when they came back…but decided not to screw them just for screwing theme sake. 

Still, turn out well for one of us😉

[iamnumerate]

1 hour ago, nome said:

In my experience probate houses are the very epitome of overpriced dross, with the most stubborn, greedy and deluded vendors of all.

I guess because interest rates are low you are not losing money haggling about the amount.

Whilst if you could get 10% then you want to sell and bank the money ASAP.

[Pop321]

14 minutes ago, petetong said:

It's already slowed down by me, up north. 5 semi's on the market in one of best area in town, would have all sold within a week or two a matter of a month ago, only the cheapest by 10-15% has sold after 4 weeks. 

It’s mixed near us but certainly slowing for overpriced stuff.

What is interesting is your comment about the best area in town. We are tentatively looking at the best area in our town but simply because we can sell in other areas at a daft price and then buy in the best area because those prices and demand has always been daft…and haven’t really gone up quite as much. (Some exceptions..the complete villas which are renovated have been snapped up by Londoners emigrating to posh North Yorkshire) 

[Twenty Something]

6 minutes ago, Pop321 said:

It’s mixed near us but certainly slowing for overpriced stuff.

What is interesting is your comment about the best area in town. We are tentatively looking at the best area in our town but simply because we can sell in other areas at a daft price and then buy in the best area because those prices and demand has always been daft…and haven’t really gone up quite as much. (Some exceptions..the complete villas which are renovated have been snapped up by Londoners emigrating to posh North Yorkshire) 

Is this like the 'froth' of the last however many years? According to your observations, things have been 'slowing' pretty much non stop for the past 18 months or so. Given the continued increase in prices that have undeniably occurred, where is the slowing? I guess if you keep posting that things are slowing you will be right at some point in the future. As per @MonsieurCopperCrutchabove, how many times are you people going to keep being wrong before you assess your world view?

 

On 28/07/2021 at 19:20, Pop321 said:

Market still buoyant near me but the frenzy seems to be slowing according to some EAs. Those kite flying are having to real things in and may have been too ambitious to get the very best price. 

BBC mention today that market slowing. 
https://www.bbc.co.uk/news/business-57997492

On 18/09/2020 at 13:05, Pop321 said:

The initial June July frenzy has passed in this area. Still a good time to sell but needs to be a ‘fairish’ price  ie comparative to pre lockdown. Difference is pre lockdown they weren’t selling...but now they still are. 

It’s certainly slowing though. 

On 15/09/2020 at 08:06, Pop321 said:

I am seeing a really mixed market...prices HAVE risen since January but noticeably it’s slowing and reductions back to January levels are here already. There are 3 in particular we are tracking that were reduced in July and my son and I said those would sell immediately yet all 3 are still for sale. And I know the market well. 

On 06/11/2019 at 08:06, Pop321 said:

We have inflated prices in the nice spots up north too...and things definitely slowing above £500k. However £500k is big money where I am ie 4/5 bed Edwardian detached....or a one bed new build flat? (just a humorous joke at the expense of the massively overpriced new builds up here)