Rightmove Reports Strongest December for Nine Years

This month has been the strongest December for the housing market since 2006, according to Rightmove’s latest data.

The property portal expects to see further rises in property prices next year, as the International Monetary Fund (IMF) warns that increasing house prices are posing a threat to the UK economy.

However, property expert Henry Pryor believes that we could be witnessing the height of the market at present. He tweeted: “When they ask you ‘How did you know the market had peaked?’ say ‘2 beds in SW8 for £3.15m’.”

Pryor was referring to a two-bedroom apartment in Nine Elms, Battersea that has been put up for sale for £3.15m.

Rightmove has reported the lowest December drop in asking prices for new homes on the market in nine years, with a monthly decline of 1.1%. Annual house price growth is now 7.4%.

It found that buyer inquiries to agents since the start of October were up 37%, while the amount of properties coming onto the market has fallen by 5% compared to the same period last year.

The portal’s average new asking price is £289,452 and it expects this to rise by 6% next year.

Director and Housing Market Analyst at Rightmove, Miles Shipside, comments: “Whilst a fall in new asking prices is the norm at this time of year, this is December’s best post-financial crash performance, signalling another round of price rises in 2016.

“Despite the shortage of suitable stock in many parts of the market, demand for housing is on the up.

“Although the average price of property coming to market is already up by a hefty 7.4% compared to a year ago, Rightmove forecasts that prices will reach and breach new records next year.”

On the extra Stamp Duty costs for buy-to-let properties and second homes – coming into force from 1^st April – Shipside says: “Those looking to expand their property portfolios will be trying hard to find suitable properties to buy and then complete the purchase before the April deadline.

“Those selling for the first time are likely owners of properties suitable for renting out, so they may be best advised to take advantage of any surge in investor activity and market as soon as possible.

“Given that the legal process could take six weeks or so once a buyer is found, they only have between now and the middle of February to take advantage of this artificially-induced boost to buyer demand.”¹

¹http://www.propertyindustryeye.com/this-is-the-strongest-december-for-nine-years-says-rightmove/