Supply of properties on the market and available to buyers is an all-time low at the same time house prices are at record levels.
The housing market remains buoyant with asking prices for property at an all time high at £336,073 rising 7.5% year-on-year, according to Rightmove.
Although there are early signs that the market is slowing with asking prices increasing by only 0.8% or £2,509 over the month, this is still the strongest rise during this period of the year since 2015.
Agreed sales from first time buyers and home movers in May are 17% higher than the same period in 2019 which is less than that of April where sales agreed were 45% higher.
Double digit growth in prices
More regions are recording double digit rise in asking prices and Wales has benefited from cash-rich home movers from expensive areas, up 14.6% and average prices of £228,410.
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This table from Rightmove shows the average asking prices for UK regions and annual growth rates for June 2021.
| Region | Asking price | Annual Growth |
|---|---|---|
| Wales | £228,410 | 14.6% |
| South West | £348,758 | 11.4% |
| Yorkshire & Humber | £218,127 | 11.3% |
| North West | £223,824 | 11.2% |
| East Midlands | £254,306 | 10.2% |
| West Midlands | £255,419 | 9.5% |
| East of England | £390,652 | 9.5% |
| South East | £444,341 | 8.7% |
| Scotland | £171,850 | 8.0% |
| North East | £164,937 | 7.3% |
| London | £650,294 | 1.8% |
Other regions with a double digit rise are the South East of England with annual growth in asking prices of 11.4%, Yorkshire & Humber up 11.3%, the North West higher by 11.2% and East Midlands up 10.2%.
In contrast to the rest of the country, London has not seen the same growth in asking prices rising by 1.8% over the year and average property values of £650,294.
For older homeowners in these regions the higher prices allow the equity release buyer to drawdown cash over time using a lifetime mortgage which can improve your quality of life.
For the second stepper sector asking prices are higher by 8.7% year-on-year with property values of £305,263 and for first time buyers prices are up by 5.2% and cost to buy a home averages £205,540.
Strong rise in top-of-the-ladder sector
Demand is higher in the top-of-the-ladder sector that includes detached properties with four bedrooms or more as they do not suffer from the same affordability issues as the rest of the market.
Asking prices have increased 12.3% or £67,394 compared to 7.5% or £23,448 for the country since March 2020 even though the stamp duty holiday ends at the end of June.
The average asking price for top-of-the-ladder homes is £616,475 and the number of sales valued at over £500,000 in May are 49% higher than the same period a year ago.
For remortgage buyers with equity gains, rather than moving you can take a further mortgage advance for home improvements to create more space such an extension.
These higher house prices can benefit older homeowners allowing the equity release buyer to access cash using a lifetime mortgage and interest rates as low as 3.0% based on provider loan to values.
With the change in lifestyle many wealthier buyers have the opportunity to buy a second home such as in the South West where 28% of properties are selling within a week, pushing up asking prices.
What are your next steps?
Talk to our London City Mortgage brokers about remortgaging your current home for the best mortgage deal. Learn more by using the property value tracker chart and equity release calculator.
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If you are releasing equity from your property such as to buy a more expensive home, we can recommend lifetime mortgages so begin your equity release quote for the latest provider offers.
