Second steppers looking for larger homes are driving the price of three and four bedroom properties to new record high prices.

Demand from home movers for larger three and four bedroom properties has driven asking prices up 5.7% over the year to a record average of £291,618 according to Rightmove.

The number of sales agreed compared to this time last year is strongest for larger homes increasing by 104% for top of the ladder sector and rising 55% in the second stepper sector.

For the year to date national sales are down by -5% with the strongest region being the East of London rising 4% whereas sales in Wales is lower by -16% and Scotland down -21%.

Strongest growth in north of country

Asking prices for houses are strongest in the north of the country with Scotland up 8.8% over the year followed by Yorkshire & Humber rising 7.2%, North West up 7.1% and North East higher by 6.4%.

Over the year asking prices are 6.2% higher in the West Midlands with average values of £243,765 and in Wales prices are higher by 6.0% and values of £212,282.

There is more competition for buy-to-let investors for larger three- and four-bedroom properties and they may find better value in smaller two-bedroom properties.

The table from Rightmove excludes inner London, shows average UK asking prices for August and September 2020 for different types of buyers.

Sector	August	September	Annual Change
First time buyers	£201,196	£200,324	+4.2%
Second steppers	£290,520	£291,618	+5.7%
Top of the ladder	£563,593	£564,512	+4.9%

There has been a small decrease in average asking prices for first time buyers down -0.4% for the month averaging £200,324 and top of the ladder continues to rise up 0.2% with average prices of £564,512.

Higher property values for older homeowners mean equity release buyers can access cash with a lifetime mortgage to consolidate debt, purchase a new car or even loft conversion.

The slowest growth in asking prices over the year is the south of the country with the East of England up by 3.5%, South West by 3.9%, South East up 4.4% and London rising 4.9%.

If you want to stay where you are, higher property values means remortgage buyers can release capital for home improvements such as an extension to increase your space.

Time to secure a buyer are falling

During the Coronavirus lockdown the national average time taken to secure a buyer increased from 61 days in March to 88 days in May and this has reduced to 53 days in August.

Scotland is leading as the time taken to find a buyer is only 35 days with the slowest transaction period in Wales at 64 days followed by the North east taking 63 days.

In the capital the total sales agreed for the year are lower by only -3% due to strong demand in outer London especially in the top of the ladder properties whereas Zone 1 is struggling with sales down -14%.

London is the second fastest region to secure a buyer after Scotland with the time taken reducing from an average 69 days last year to only 49 days.

These durations may start to increase due to 40% more transactions being processed compared to this time a year ago helped by the stamp duty holiday which ends at the end of March 2021.

What are your next steps?

Talk to our London City Mortgage advisers if you are an older homeowner releasing equity from your property, we can recommend the lifetime mortgage to pay university fees for grandchildren or home and garden improvements.

Start with a free mortgage quote or call us and we can take your details. Learn more by using the equity release calculator, property value tracker chart and mortgage monthly costs calculator.

At LCM our mortgage brokers can provide advice if you are a first time buyer, moving home, want to remortgage your existing home to a new cost effective mortgage deal or are a buy-to-let investor.