Rightmove, stated that record numbers of houses are being put on the market for sale with near-frenzied buying sending asking prices to record levels.
Rightmove also said it had its 10 busiest days ever in January, with house hunters looking at 50 million property pages a day for the first time, or about 500 a second.
There are now around 18% more properties being listed than a year ago,but demand remains high because of supply shortages and this has so far not affected prices.
Priority to immediate sales
Such is the demand for property, that in many areas, estate agents are no longer interested in selling where there is a chain, such as for home movers, and require buyers to move immediately.
“Especially in the south, agents report that buyers with a property yet to sell are losing out to buyers able to proceed with speed,” said Miles Shipside, a director and housing market analyst for Rightmove.
The government – backed Money Advice Service however claims that 20% of first time buyers who bought in the past two years wish that had bought somewhere cheaper and had underestimated the costs of running a home.
Affordability is stretched
Affordability is particularly stretched in London and the south-east where according to Haart, the average property rise by 18.4% to £448,800, a rise of £69,784 over the year, which is double the average salary of a Londoner.
House prices in London are likely to increase benefitting existing homeowners such as remortgage buyers giving them an opportunity to release capital which they can use to improve their home such as adding an extension or new kitchen.
For older homeowners the considerable value in their property allows the equity release buyer to access money using a lifetime mortgage to repay an interest only mortgage, home and garden improvements or gift to a family member.
A recent Guardian/ICM poll has found a growing exhaustion with rising house prices among the general population. When asked to name the biggest problem in housing, 29% said it was buyers priced out of the market, a quarter said it was the lack of council housing, and 15% said it was excessive private rents.
However, most households including first time buyers, home movers and remortgage buyers, buy-to-let investors expect house prices to continue to rise this year.
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.
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.
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 or reduce inheritance tax owed by your beneficiaries.
Use your dashboard to access online mortgage quotes, money off vouchers and start your mortgage application online 24/7 on desktop, tablet or smartphone.
