Yahoo Finance UK property asking prices jump to record £348k in February
Property asking prices are up 9.5% this month compared to last year, with houses coming to the market at a record high.
According to data from property site Rightmove (RMV.L), the average asking price increased by 2.3% — or £7,785 — in February to a record of £348,804, the biggest monthly jump in pounds recorded by Rightmove in over twenty years.
Prices are now 9.5% higher than a year ago, the highest annual rate of growth since September 2014.
This new record means that average asking prices have now risen by nearly £40,000 in the two years since the pandemic started, compared to just over £9,000 in the previous two years.
The price growth was driven primarily by the “second stepper” sector — those who may find themselves in need of more space and are now ready to move on from their first homes.
Read more: UK house prices: Average cost to own a home hits £275,000
With Omicron restrictions lifted and companies encouraging people to return to the office, London has recorded the biggest jump in the number of buyers sending enquiries of any region, at 24% — a new price record and the highest annual rate of price growth for the capital since 2016.
New homes coming up for sale in London have an average asking price of £667,000. In comparison, the average price tag of properties coming up for sale in Scotland stands at £174,567.
Bromley saw the biggest increase in London from February 2020, with the average price currently at £610,457 — an 11.5% jump. Barking and Dagenham saw prices climb 10.8% to £361,509.
The only borough in London that experienced a price drop was Hackney, where asking prices fell 0.9%. Still, homes for sale in this area come with a £653,345 price tag.
Tim Bannister, Rightmove’s director of property data, said: “High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month.
“The rising cost of living is undoubtedly affecting many people’s finances, especially those trying to save up enough for a deposit to get on the ladder or to trade up. However, despite rising costs and rising interest rates, the data right now shows demand rising across the whole of Great Britain, with many people determined to move as we head into the spring home-moving season.”
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Amid a lack of supply, more potential buyers are sending enquiries to agents compared to this time last year to try to beat the crowd, with the result being that buyer demand is 16% higher than at this time in 2021.
Still, the number of new sellers listing their homes for sale is up by 11% compared to this time last year, and January saw a rise of 11% in the number of people requesting a home valuation from an estate agent.
Bannister added: “A fear of missing out on one’s dream home is really driving market behaviour at the moment, as movers look to do all that they can to avoid the disappointment of being too slow to secure their ideal property.
“We’re seeing buyers sending more enquiries for available homes than usual, and doing everything that they can to put themselves at the top of the list.”
