Record house price growth in Wales and the north as London stands still

Rightmove’s May 2021 House Price Index reports that the average asking price for UK properties has increased by 1.8% since the previous month.

Rightmove also states:

• Average London house prices are 2.9 times higher than prices in the norther areas of Great Britain. Although still large, this is the smallest ratio recorded by Rightmove since 2013
• Wales has seen the most growth since the first lockdown at 13%
• The north has seen a greater imbalance between demand and supply than London, with people more likely to move locally and some more able to afford to upsize

The full report can be read here.

Marc von Grundherr, Director of Benham and Reeves, comments: “A 0.8% rise in monthly price rises, whilst slower in pace than in recent months, is still almost 10% annually if such a trend were to continue. That’s colossal growth and even more so at the top end of the market where homes are seeing over 12% rises in value despite the fact they may soon miss out on the maximum stamp duty holiday saving of £15,000. This bodes well and may confound the doomsayers that have been forecasting a cliff edge come the end of June.”

Ged McPartlin, Managing Director of Ascend Properties, comments: “Despite some southern regions finally starting to stir, the North continues to lead much of the market where annual house price growth is concerned. It’s probably not accurate to say that cash-rich relocators from southern cities are driving this northern resurgence and this strong performance has been very much built on a foundation of localised demand, from buyers keen to take advantage of record-low interest rates while they can.”

James Forrester, Managing Director of Barrows and Forrester, comments: “Home sellers and their acting agents have never had it so good. Not only are transactions climbing along with house prices, but the speed at which properties are selling is extremely fast. Just 41 days to sell a home is close to an all-time best and means that at some extremes, listings have been selling before the ink is dry on the sales particulars.

“Certainly, in the West Midlands, we’re seeing contracts agreed within a week of listing and although it’s unclear as to how much longer the market can perform at this rate, there’s certainly no sign of it letting up anytime soon.”

Matthew Cooper, Founder & Managing Director of Yes Homebuyers, comments: “Property stock is evaporating at an alarming rate due to huge levels of buyer demand and this severe imbalance is causing an artificial property price boom. Great for sellers who can justify overpricing their home but not so great for the wider market that is already groaning under the pressure.”