Asking prices in the UK surge to a record high of £312,625 rising 3.5% over the year and now threatened by the spread of Coronavirus.
Sellers have increased asking prices to a record high up 3.5% or £10,571 year-on-year with average values of £312,625 according to Rightmove but market activity is at risk from the spread of Coronavirus.
First time buyers asking prices are higher by 3.1% annually with average values of £195,463 and for second steppers prices are up 2.7% with values of £280,818.
The lack of new supply of suitable properties to the market at an affordable price means home movers may decide to stay in their current home and save for a bigger deposit.
The property market is recovering from uncertainty caused by Brexit only to be faced with the Covid-19 Coronavirus which is expected to cause volatility over the spring and summer.
Strong rise for London asking prices
London has seen a surge in sales with property asking prices up 5.1% over the year, the highest annual rate since 2016 due to strong buyer demand and lack of supply.
Asking prices average £638,826 for Greater London rising £30,999 in the last year and are 1.6% or £9,773 higher over the month.
This table from Rightmove shows the average asking house prices and annual change for London boroughs to March 2020.
| Borough | House prices | Annual change |
|---|---|---|
| Lambeth | £656.625 | 8.6% |
| Kensington and Chelsea | £1,611,065 | 6.8% |
| Sutton | £479,220 | 6.3% |
| Westminster | £1,497,296 | 5.8% |
| Waltham Forest | £501,849 | 5.6% |
| Tower Hamlets | £583,148 | 5.2% |
| Camden | £1,029,110 | 4.5% |
| Islington | £777,917 | 4.2% |
| Lewisham | £475,625 | 4.0% |
| Newham | £419,269 | 4.0% |
Inner London properties have seen asking prices up 7.4% year-on-year with strong performance in Kensington and Chelsea higher by 6.8% and Westminster up 5.8%.
Outer London is buoyant with Sutton up 6.3% or £28,401 annually with average asking prices of £479,220 and Waltham Forest higher by 5.6% or £26,613 and prices at £501,849.
Miles Shipside, Rightmove director said, new supply to the market has failed to keep anything close to the pace of increased demand in this recovery.
With fewer suitable homes on the market as the equity release buyer can avoid downsizing with a lifetime mortgage to access cash from their home to consolidate debt, home and garden improvements.
Sales agreed rise 18% annually
Across the country there has been a surge in sales agreed rising 17.8% year-on-year and the highest level since May 2016 in contrast supply of new properties is up only 1.2%.
This is pushing average asking prices higher over the year rising 1.0% in the month to £312,625 with 110,000 properties on the market selling at record high values.
For remortgage buyers higher prices allows them to release capital when they next switch to a preferential rate and use this for home improvements or give to their children to buy their first home.
The higher asking prices for homes means buy-to-let landlords need a larger deposit to reduce the mortgage or higher rental income to cover the lenders interest payments.
Properties are selling in 67 days which is 4 days faster than a year ago and in London this is 15 days faster reducing from almost 82 days last year.
Despite the limited stock on the market Rightmove recorded 26% more instructions in January compared to this month last year and this is expected to continue.
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 monthly 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.
