Property price inflation looks set to continue in the short term, according to data released by Rightmove this week.
The property website revealed that the average asking price for new property added in September is £338,462, an increase of nearly a third month-on-month.
“This is only an early snapshot, but autumn is traditionally a busy period” says Tim Bannister, Rightmove director of property data. “The frenetic pace of this year’s market may also have put some potential movers off, but there are signs of a return of some normality.”
While prices are still officially the highest on record from Rightmove, there does appear to be some sign of stabilization, with 14% more listings in the first two weeks of September than in the last two weeks of August.
“We are encountering more clients who are selling and completing, and moving into rented accommodation before buying, so they can move quicker on the new purchase, given the huge appetite for property this year” adds Andy McBride, director at Professional Contractor Mortgages.
“Buyers are looking to put themselves at the front of the queue when it comes to vendor choice and being readily proceedable without the need for a chain, is a great way to do that.”
“There seems to be a slow increase in the number of properties on the market now, and with the cost of borrowing money to buy now the cheapest it has ever been, thanks to historically low interest rates, it has never been a better time to be looking at mortgage options.”
Further figures this week have revealed that First Time Buyers are paying a 12% premium compared to the same time a year ago, however with current market delays, it seems that for many, the premium is worth paying to be viewed more favorably by vendors and estate agents alike.
“Traditionally, those with a property to sell have been in a much stronger position when it comes to offering on new property, with vendors valuing the equity in existing bricks and mortar above the generally smaller deposits and larger reliance on mortgage funds of First Time Buyers” adds McBride. “The bottleneck of processing over the past year however has flipped that on its head, and many homemovers are now actively trying to get themselves into a position whereby they aren’t reliant on a sale.”
“With 9 out of 10 mortgage applications now coming through a broker, it is a real eye opener to see the extra value that is placed on the proceedability of a buyer with no chain, especially those retaining existing properties and renting out instead of selling them.”