House prices have reached a new record high this year and are set to hit £300,000 in the near future, according to data from Rightmove.
The property portal found that new vendor asking prices have risen by 2.9%, or £8,324, in February, taking the average house price in England and Wales to £299,287.
Average House Price Almost at £300,000, According to Rightmove
The Director of Rightmove, Miles Shipside, comments on the figures: “The New Year’s market has hit the ground running in many locations, continuing last year’s momentum and resulting in the price of property coming to the market hitting a new high.”1
The previous peak was recorded in October last year.
Rightmove also reports that the supply of new homes is improving. In February, there was a 5% rise in the amount of new properties coming onto the market compared with last year.
Supply of first time buyer homes has grown the most, up by almost 10%.
However, supply is not consistent across regions. Only four regions have seen supply increase by more than the average 5% – London, the South East, South West and Yorkshire and the Humber.
Supply has decreased in the West Midlands, where buyers are struggling to find homes.
The Managing Director of Chancellors estate agent, Robert Scott-Lee, says: “January has seen a huge jump in demand that has surpassed the normal seasonal increase.
“Undoubtedly, this is partly fuelled by investors looking to take advantage of a quick purchase before the tax change in April, and sellers looking to secure a sale to an investor who is panic buying.”1
We recently reported that a surge of buy-to-let landlords into the property market is pushing prices higher. Investors are looking to avoid the 3% Stamp Duty surcharge, which will be in effect from 1st April.
As house prices rise, as do rents. This morning, Countrywide revealed that rent prices are now the highest on record. Find out more: /rents-are-highest-on-record-says-countrywide/
Remember to check back to our latest news for property market updates.
1 http://www.independent.co.uk/news/business/news/house-prices-approach-record-300000-rightmove-reports-a6874816.html
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