New properties on the market hit record asking prices up 2.1% this month as demand drives sales to the fastest ever pace.
Asking prices for new properties are at an all-time high averaging £327,797 after rising 2.1% or £6,733 this month, according to Rightmove, as demand pushes up the rate of sales.
Demand from first time buyers and home movers continues to outpace the supply of new properties to the market with sales agreed up 55% compared to the same period in 2019.
The average time it takes to sell a property has dropped to 51 days down from 65 in January 2021 with the stock of properties available to buy reducing to the lowest proportion recorded.
Of those properties listed in March, 23% had agreed a sale and had been on the market of less than a week.
Wales with highest house price growth
For new properties Wales has the highest rise in asking prices increasing 12.2% over the year with average house prices of £220,774.
This table from Rightmove shows the average asking prices for UK regions and annual growth rates for April 2021.
| Region | Asking price |
Annual growth |
|---|---|---|
| Wales | £220,774 | 12.2% |
| Yorkshire & Humber | £214,045 | 9.4% |
| North West | £218,859 | 9.0% |
| Scotland | £169,649 | 8.5% |
| South West | £334,807 | 6.9% |
| East Midlands | £248,869 | 6.8% |
| West Midlands | £249,200 | 6.5% |
| North East | £161,994 | 6.1% |
| South East | £433,481 | 5.8% |
| East of England | £375,505 | 5.1% |
| London | £635,306 | 1.4% |
Asking prices increased in Yorkshire & Humber up 9.4% with average prices of £214,045 and the North West higher by 9.0% year-on-year.
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London was the slowest rising region with asking prices up 1.4% and average property values of £635,306, far behind the next lowest of East of England with prices higher by 5.1% and the South East up 5.8%.
These higher asking prices helps the older homeowners access cash using a lifetime mortgage and loan to values based on age determine the maximum amount you can release from your property.
You can use equity release for many reasons such as home and garden improvements, gift to a family member and if you are considering repaying the mortgage early some policies allow up to 40% per year penalty free.
Semi-detached properties selling the fastest
The best selling properties are two- and three-bedroom semi-detached houses with 30% on the market being sold in under a week of being listed.
This could be due to the potential savings from the stamp duty holiday driving demand to buy and complete before the June 2021 deadline.
There were 145,000 new properties listed this month which is significantly below the current levels of demand and 3% higher than the number for the same period in 2019.
Competition remains high with many properties being sold in sealed bids which means some are sold well above the asking price although this may change after the stamp duty holiday ends.
It remains difficult for first time buyers to get on the property ladder with average prices of £203,564 up 4.2% over the year and most lenders require a minimum 10% deposit.
For remortgage buyers it may be easier to stay where they are rather than move and take a further mortgage advance while interest rates are low to add an extension or loft conversion to create more space.
What are your next steps?
Talk to our London City Mortgage brokers for advice if you remortgage your existing home and want the best mortgage deal. Learn more by using the property value tracker chart and equity release calculator.
Start your free remortgage quote and we can find the best mortgages and lowest rates for your home at this link:
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To release equity from your property to improve your quality of life or buy a more expensive home, we can recommend lifetime mortgages so begin your equity release quote for the latest provider offers.
