The number of house sales have reached a record for the last ten years as summer holidays are replaced by moving home.
House sales agreed have reached a record high for the past ten years and 20% up on the previous high according to Rightmove as home movers replace summer holidays.
The value of property sales agreed has increased by 60% over the same week in 2019 and the total value of transactions is a record £37 billion.
No all regions are growing as there are falls in asking prices for London down -2.0% with average property values of £629,261 and the South East lower by -0.2% for the month and values of £417,987.
There could be opportunities for buy-to-let investors with a greater choice of lower priced properties to generate a better return on investment.
Regions with strong asking prices
Usually during summer asking prices fall as holidays distract home buyers but the Coronavirus pandemic has shifted priorities and record high seller asking prices have been recorded in seven regions.
Wales has seen the highest rise in asking prices up 2.9% for the month with average property values of £212,800 followed by the North East up 1.7%.
There is strong growth for Yorks & Humber, East Midlands and West Midlands with average asking prices higher by 1.4% followed by the north East and South West up 1.0% for the month.
The Rightmove table (excluding inner London) shows how average UK asking prices have changed from July to August 2020 for different types of buyers.
| Sector | July | August |
Change |
|---|---|---|---|
| First time buyers | £199,340 | £201,196 | +0.9% |
| Second steppers | £288,526 | £290,520 | +2.7% |
| Top of the ladder | £571,005 | £563,593 | -1.3% |
The rising asking prices makes it harder for first time buyers as they need a larger deposit to buy and many lenders have also withdrawn mortgages allowing 10% deposits or less.
For remortgage buyers higher prices offer them the possibility to release capital which they can use to improve their home. such as adding a loft conversion or extension.
Monthly sales at an all-time high
Sales agreed are 38% higher than the same period last year and 20% higher when compared to the previous record in March 2017.
Activity is strong across different buyer types with first time buyer sales up 29%, second steppers up 38% and for larger homes at the top of the ladder higher by 59%.
Across the country there are 44% more properties on the market compared to this time last year offering greater choice to buyers with the latest weekly sales agreed 60% higher than a year ago.
Moving home is strongest in London with the supply of properties higher by 69% followed by the South East up 60% and the East of England up 56%.
There are significant variations regionally as well with the out-of-city exodus driving asking prices to new highs in places like Devon and Cornwall.
For older homeowners wanting to exchange the city for a higher quality of life on the coast, the equity release buyer can use a lifetime mortgage to buy a more expensive home.
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.
Start with a free mortgage quote or call us and we can take your details. Learn more by using the mortgage cost calculators, equity release calculator and property value tracker chart.
For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to repay an interest only mortgage or pay for care at home.
