The cause and effect
This week, Rightmove announced that the av. price of a property in England & Wales has risen above £300k for the first time. Some of this is expected to be attributed to buy-to-let landlords seizing the moment to beat the SDLT 3% surcharge from April 1. Although agencies also report an increase in properties coming onto the market and generally a quick turnaround on sales.
The driving forces behind the rise
Rightmove figures show that an average house price in February was £299,287 yet in March this jumped to £303,190, tipping it over the £300k threshold for the first time.
Previously, London had been the driving force behind significant average house price growth, yet it appears that this recent increase has been from more activity in the north and west of the country.
“In the past decade, prices have increased by more than £100,000.” Rightmove
Increase in available property on the market
Rightmove also report a 3% increase in the number of properties coming to market, compared to March last year, with 30,000 new properties becoming available for sale each week in the last month.
Although this is an increase on past performance data, there remains certain areas in the country that lack new properties to meet demand.
Buy-to-let investors snapping up a deal
It is believed that buy-to-let investors have been busy sealing the deal on further rental properties before the Stamp Duty Land Tax increases for them in April 2016.
Miles Shipside from Righmove commented “First time buyers and existing home owners are not equipped to cope with current prices, amid stricter mortgage lending rules and average earnings lagging behind the pace of house price growth”
Nevertheless, their report shows that across the board properties have been selling well, with open-house viewings well-attended and offers being made, and received, quickly.
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