The average asking price for a home rose to more than £300,000 in February, just £40 shy of the all-time record, new research suggests.
Rightmove reports that asking prices jumped by 0.8% to more than £2,500 over the past month, and while this was slower than the 2.3% jump observed between December and January, it has taken house prices close to an all-time high.
The average asking price is now £309,399, and the so-called ‘Boris bounce’ observed since Boris Johnson’s General Election win continues to be attributed to rising economic confidence within the housing market.
These findings align with a report last week from Which? observing an 11% average increase in house prices since the Brexit referendum, and Rightmove anticipates this growth will continue.
Rightmove director, Miles Shipside, said: “There is a boom in buyer activity outstripping the rise in the number of new sellers, which we expect to lead to a series of new price records starting next month. Buyers who had been hesitating and waiting for the greater political certainty following the election outcome may be paying a higher price but they can now jump into the spring market with renewed confidence.”
House Prices Could Encourage Self Builders
While this growth is positive for the housing sector, the news will be less well received by first-time buyers struggling to get on the market.
Last year it was revealed that the average two-bedroom property has a national asking price of £193,103, and this could increase to £482,741 over the next 30 years.
Aspiring homeowners may find that self build offers them the opportunity to build their dream home, which can also help them save up to 30% on market value.
Will House Prices Continue to Rise?
Rightmove reports that prices rose in the month to mid-February in every part of the UK except the East Midlands, with sales surging by 12% compared with the same month in 2019. The figures are based on the 108,107 asking prices recorded on Rightmove over the past month, equal to 95% of the UK market.
The property portal has urged hesitant buyers to jump into the market given the signs of strong growth, but there remain obstacles which could affect the sector.
The approaching Spring Budget under new chancellor Rishi Sunak, and the recent appointment of new housing minister Christopher Pincher have created uncertainty, and ongoing EU trade negotiations could test the housing market’s resolve.