With strong demand from buyers asking prices for property are up on average 1.9% compared to March before the Coronavirus lockdown.
Asking prices for property has increased by 1.9% or £6,266 on average compared to March with values of £337,884 after strong demand from home movers and first time buyers, according to Rightmove.
As the Coronavirus lockdown started some 175,000 sellers were unable to place their property on the market and now listing exceed last year and agreed sales only 3% down on last year.
Since the market opened on 13 May there have been 40,000 new sales with interest from buyers calling or emailing estate agents 40% higher than March.
Buyers agree to pay more for property
Seller asking prices have increased since March with first time buyers rising 1.6% to a national average of £212,528 in June and second steppers at £297,757.
Buyers are agreeing to pay more to secure a sale offering 97.7% of the asking price compared to 96.6% in February.
This table from Rightmove shows the average change in asking prices for England (excluding inner London) from March to June for market sectors.
| Sector | March | June |
Change |
|---|---|---|---|
| First time buyers | £209,272 | £212,528 | 1.6% |
| Second steppers | £292,955 | £297,757 | 1.6% |
| Top of the ladder | £572,773 | £591,508 | 3.3% |
At the top end of the market asking prices have increased the most by 3.3% with average property values of £591,508.
The highest change in asking prices since March has been East Midlands rising 3.3% with average values of £236,110 and London has decreased by -1.7% with values of £628,284.
Higher prices for remortgage buyers allows them to release capital at historic low interest rates to improve their home such as adding an extension or new kitchen.
For older homeowners the rise in asking prices would allow the equity release buyer to access more money using a lifetime mortgage to consolidate debt or help your children start or expand a business.
Market demand resilient to lockdown
The property market was reopened from 13 May and has displayed far more resilience than expected as pent-up demand during lockdown is released.
According to Miles Shipside, Rightmove director, sellers have been concerned about deals being renegotiated to lower house prices although it would seem buyers are looking to exchange quickly.
From 24 March to 12 May there have been 175,000 sellers out of the market compared to this time last year and this has kept upward pressure on prices.
Lenders have withdrawn many 90% and 95% loan to value products with the threat to employment from Coronavirus damaging the risk profile of low deposit mortgages.
These restrictions do not apply to buy-to-let investors as they must have a 25% deposit and have rental income that exceeds 145% of a notional mortgage interest rate.
With over 40,000 new sales since the market opened up with buyers agreeing prices near to those at the start of the year, lenders can look to offering more low deposit mortgages to first time buyers.
What are your next steps?
Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise.
Learn more by using the mortgage cost calculators, equity release calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.
