Buyers face bidding wars to trap homes despite rising inflation, the cost of living crisis and fears of falling property. He adds that properties sell faster than ever. In April of this year, the average sales time was 33 days, less than half of the 67 days recorded in the same month three years ago. Rightmove says more than half (53%) of properties are selling above the final advertised price.
The lack of housing on the market, when buyer demand is high, is inevitably driving up prices. The housing market remains strongest in Wales in April for the 15th consecutive month, with house prices up 11.6% from last year, while annual growth in London is slower, at 3.6%, according to Zoopla, which bases its data on a combination of sold prices, mortgage valuations and agreed sales. Rightmove attributed the December decline to seasonal factors, adding that average house prices over the past 12 months had increased by 6.3%. England was the next best-performing region, with annual house price increases of 10.7%, slightly up from 10.5% last year until November last year.
House prices have risen sharply over the past 12 months, with the pandemic and stamp duty exemption causing a more volatile market. However, apartment prices continue to rise, albeit at a slower pace than homes, and there are some signs that buyers are taking the opportunity to move to lively cities as Covid restrictions ease. To apply for the housing subsidy, you must have no more than £16,000 in savings, which may not be enough for a deposit in many parts of the UK. The company said an increase in home buying and selling this year has caused UK home values to rise by 670 billion pounds sterling to 9.5 trillion pounds sterling He added that the highest home price growth achieved during that period had been recorded in the North West England, with a return of 18.6% in the year to June.
Rising housing prices and slower wage growth have combined to stretch traditional housing affordability measures. Regionally, Wales recorded the highest growth in house prices, with 9.8% for the last year to August, followed by Northern Ireland (8.4%). Another 4 million (17% of households) live in the social rental sector, while 15.4 million (about 65%) own the house in which they live. Property values have increased as households seek accommodation suitable for changing lifestyles, including more time spent working from home and new travel routines.
Regionally, Wales, with 11.8%, recorded the highest annual growth in house prices, the twelfth consecutive month it had achieved this status. In fact, home price growth has outpaced income growth by a significant margin over the past 18 months and, as a result, housing affordability is already less favorable than before the pandemic broke out. The government says this risk would be mitigated by setting a limit on the number of housing association properties that can be sold, while committing to replace every home sold.