Strength of property market clear as asking prices increase

Thu 24 Aug 2017

The resilience of the property market has once again been highlighted by new figures that show asking prices are continuing to rise.

Rightmove’s latest House Price Index reveals the average price of a property coming to the market this month is 3.1 per cent higher than in August 2016. It comes after statistics for July noted a 2.8 per cent annual hike in asking prices.

The index highlights a number of regional variations, with several counties identified as currently enjoying an annual hike in house prices of more than double the national average. The three most prosperous markets are named as Northamptonshire (a 9.1 per cent increase in the last year), Derbyshire (7.9 per cent) and Norfolk (7.4 per cent).

In terms of wider regions, the East Midlands (6.8 per cent) and West Midlands (5.8 per cent) led the way.

Kevin Shaw, national sales director at estate agents Leaders, says: “These figures, which are backed up by our own findings, clearly demonstrate the resilience of the housing market after last year’s historic Brexit vote.

“With the London market now well beyond the reach of many buyers, we have seen a definite ripple effect to the more affordable regions that have good transport links to either the capital or other large cities and towns. Many also benefit from infrastructure initiatives, such as HS2 and other urban regeneration projects.

Birmingham is a notable hotspot, rivalling Manchester for second city status. Most crucially, unlike London and the south-east, house prices are within the reach of first-time buyers.

“Demand for rented property in these areas is also exceptionally high, enticing buy-to-let investors looking for inexpensive opportunities to invest. All these factors have driven demand and above average asking price increases over the last 12 months.”

Rightmove noted August is a typically slow month for the property market, with buyers and sellers often having holiday distractions, but the average asking price now stands at a healthy £313,663.

For more information or advice on putting your home on the market contact your local Leaders branch.