Despite the upcoming general election and Brexit, the property market continues to move forward with year to date sales up 2% compared with the previous election period of 2015.
Rightmove reports that despite the market in general slowing, in parts of London asking prices are reaching record highs up 2.% month on month to an average of £649,864. In other parts of England and Wales asking prices have increased 1.2% for five straight months to an average of £317,281.
As the election gets closer the data suggests that London’s new seller numbers are up 4% month on month whereas the rest of the country remains lower. Property prices hitting the market are now 3% higher than a year ago with the typical family home now increasing 5.4% year on year as families with young children under eleven years of age being the most likely home buyers. Typical properties sought after are three and four bedrooms homes which have been the biggest increase in property type coming on the market with an increase over last year of 5.4% or £13,960 with average property prices rising to £270,953.
Regional Average Home Prices
Asking prices in Wales have decreased 1.8% month on month to an average price of £182,769 up 0.7% over the past year.
In the North West there was a decline of 0.1% month on month but overall for the year on year are up 3.6% with the average property reaching £185,911.
One area that had been leading the country in price growth is the East of England. This region has seen asking prices remain stagnant this year with average valuations at £349,251 but still up 4.4% from this time in May in 2016.
The South East has seen a rise of 2% month on month price growth with the average home valued at £426,767, indicating a year on year increase of 3.4%. The South West recorded a monthly increase of 1.5% or 3.7% year on year to £309,033. Additionally the West Midland is seeing a 1.3% monthly increase pushing home valuations to £218,620, an overall yearly increase of 5.9%. The North East had a very modest monthly increase of 0.4% or 1.6% year over year to an average of £150,935. Up 0.2% monthly and year over year 4.4% are the East Midlands with home prices averaging 205,453. Yorkshire and Huber increases reached 0.1% monthly and increased in the year overall 1.9% to have the average property valued at £180,672.
Miles Shipside, Rightmove director and housing market analyst says of the current market:
‘Demand is exceeding supply in many parts of the country and continues to push up the prices of newly marketed homes. The number of sales agreed by estate agents remains robust, being 2% higher in the year to date than the same period in the previous election year of 2015,’ he said.
Property in London continues to adjust due to issues such as stamp duty and slower price growth, however new sellers are more prevalent in the capital than in the rest of the country.
Mr. Shipside describes the market thus: ’More properties have come to market than in the previous month, despite the approach of polling day often causing potential sellers to delay. In addition, the average asking price of newly marketed property has hit an all-time high, just under £650,000. Time will tell how close these sellers get to their asking prices, but the uncertainty associated with an election has not deterred them from trying in increasing numbers and at an increased average price.’
‘While some sectors and areas of the London market are finding it harder to sell, this election, unlike the one in 2015, does not introduce uncertainty over the unknown factor of a mansion tax. The market knows what taxes are due, and while they are very substantial in the upper sectors, we are well over two years through the process of readjusting to their effect.’
Housing price growth is expected to level out this year according to Russell Quirk, chief executive of online estate agents eMoov, he said: ‘It is interesting that Rightmove should have observed no wobble in the market where asking prices are concerned, despite the industry indices based on sale completions stating otherwise.’
By Kevin Murphy: www.kevinmurphy.london