Rightmove Property Blog » Property news

New asking price record as London surges past £500,000 milestone

clairep — Tue, 21 May 2013 09:16:23 +0000

Buyers in the capital are facing new sellers’ average asking prices in excess of £500,000 for the first time. This month’s jump of £15,418 has pushed the average asking price of newly marketed property to £509,870, 2.7% above the previous high set in March this year.

Miles Shipside, Rightmove director and housing market analyst comments:
“The pressure cooker of the London property market has been building up a head of steam every month since the beginning of the year, ready to blow through the half million pound mark. The capital passed the milestone this month with some style, beating it by over £9,000”.

With the supply of property coming to market down 5% so far in 2013 compared to the first five months of last year, an increase in demand from buyers is putting pressure on prices. In many areas, prospective buyers are often faced with intense competition and this spirals as new buyers enter the market hopeful but are left disappointed. Some agents report that group viewings are increasingly commonplace and that lower-priced flats and entry level houses are highly prized.

There are a number of new price records across London’s borough this month, most notably Camden which joins City of Westminster and Kensington and Chelsea in the ‘£1 million-plus’ club.

Click here to view the full report.

May House Price Index Infographic

clairep — Mon, 20 May 2013 10:32:49 +0000

Rightmove’s May House Price Index shows that for the fifth consecutive month the national average has risen just shy of a quarter of a million pounds at £249,841, surpassing the previous high set in June 2012.

To view the full report click here or read the May House Price Index blog story here.

Our infographic provides a breakdown of how prices are performing across each region and property type.

To embed this infographic on your site, copy and paste the following code:
<a href="http://www.rightmove.co.uk/news/files/2013/05/HPI_Infographic_MAY_13.jpg"></a><br /> [Source: <a href='http://www.rightmove.co.uk'>Rightmove Property Portal</a>]

Records tumble: national nears £250k, London passes £500k

clairep — Mon, 20 May 2013 08:00:24 +0000

Rightmove’s latest House Price Index report shows that asking price records are tumbling this month.

The fifth consecutive monthly rise has left the national average just shy of a quarter of a million pounds at £249,841, surpassing the previous high set in June 2012. London, the South East and East Anglia have also hit all-time highs, with buyers in the capital facing an average asking price in excess of £500,000 for the first time.

Miles Shipside, Rightmove director and housing market analyst comments:
“The tumbling of records is being driven by the equity-rich older generation and has a definite southern bias. However, despite a new national record, it’s not ‘green-shoots of recovery’ across the board, especially for those without access to a significant deposit. They must wait patiently until January when the Help to Buy scheme extends to the resale market – unless new homes developers can increase building dramatically in the coming months.”

The average price of property coming to market has risen by 9.1% (+£20,412) so far in 2013, the strongest start to a year since 2004. This is the fifth monthly rise in a row, with all regions in positive territory this month. However, sellers in two northern regions, Yorkshire & Humberside and the East Midlands, are still in negative territory year-on-year. With London sprinting past the £500,000 milestone for the first time with a 3.1% monthly rise, a typical home in the capital is more than twice as expensive as the national average. Outside London and some southern hotspots, agents report that the market remains sensitive to price, with buyers willing to take their time to find their ideal home.

Shipside cautions:
“For those now in a position to buy, the recession appears to have precipitated a change in buyer behaviour which has left them more choosy and less likely to settle for second-best. Not only are they looking for value and being mindful of paying over the odds, prospective buyers are giving thought to ease of resale, a sign that the pain of this financial crisis has left them much more mindful of the future liquidity of their assets.”

Rightmove saw record traffic levels in April, up 35% on 2012. With choosier buyers and a lack of decent property for sale in some areas, those searching for property and researching the market got through a record 1.25 billion pages last month. Nearly 400 million of those pages were viewed on mobile devices, such as smartphones or tablets, a clear sign that home-movers are fully embracing the benefits of being able to search on the move and access listings the minute they are added to Rightmove.

Click here to view the full report.

What’s so good about renting?

clairep — Fri, 17 May 2013 10:13:15 +0000

These are dire times for today’s renters. 60% of current tenants think their monthly rent will be higher 12 months from now, one in four spends at least 50% of their monthly take home pay on rent and 36% expect to remain in rented accommodation for 3 years or longer - up from 32% this time last year.

In addition, according to Rightmove’s latest survey on the rental market, the majority (58%) say that they would like to buy but cannot afford to and are effectively ‘trapped’ in rented accommodation. With all this doom and gloom about the rental market, is there anything appealing about living in rented accommodation? 82% of renters who completed our recent survey seem to think so!

So what’s good about renting? With over 40% stating the ability to move to a new flat or area ‘when they feel like it’ as the most appealing aspect of being a renter, it appears renters value the freedom being footloose and property free permits above all else. Location also comes out on top, with 35% stating that renting allows them to be able to live in a location they would not be able to buy. 22% of renters even think that renting is cheaper than owning a property. 18% say renting allows them to afford the lifestyle they want, while ‘not having to buy furniture’ is the least appealing aspect of being a renter, with 7%. Surprisingly, only 18% stated that there was nothing appealing about renting.

So while the average intending first-time buyer will need to save a deposit of £20,000, rising to £30,000 for those in London and making the dream of home ownership a near impossibility for a vast number of current tenants, majority seem to have found a silver lining to the cloud of renting.

To view our full Rental Report click here.

Could Help to Buy offer Generation Rent motivation and hope?

clairep — Mon, 13 May 2013 08:15:43 +0000

Only two in five (42%) ‘trapped renters’ – tenants who would like to buy but can’t afford to – are currently actively saving for a deposit to get them onto the housing ladder. And of the 58% that haven’t yet started saving, two in five (41%) haven’t even set a date to start. Rightmove’s latest survey highlights some of the challenges facing Generation Rent in their bid to graduate from ‘tenant’ to ‘first-time buyer’.

Miles Shipside, Rightmove director and housing market analyst comments:
“For those who haven’t started saving, home-ownership must seem so far away that many find themselves in a hopeless situation. On average, the monthly rent accounts for 37% of tenants’ take-home pay and even those that are able to save anything at all are only saving around 10% of what they bring in each month.”

58% of tenants are currently ‘trapped’ in rented accommodation – up from 56% this time last year –yet only two in five (42%) of these are actively putting money aside to get them onto the housing ladder.

When asked to evaluate how their saving efforts were going, only one in twelve (8%) current savers stated they were ‘on course’ to meet their target deposit. 40% said that while they could only afford to save a little each month they’d ‘get there eventually’. A further 39% said that as they weren’t able to put enough away they would ‘need a windfall’ in order to reach their goal.

Shipside adds:
“The all-important deposit has been the stumbling-block stopping many from graduating from tenant to first-time buyer in recent years. Even those who’ve been diligently saving, are still left hoping that their lottery numbers come up or the Bank of Mum and Dad proves less picky with its lending than the High Street banks. However, the Government’s proposed new Help to Buy scheme could yet prove to be a ‘virtual windfall’ for Generation Rent by lowering the deposit hurdle to 5%.”

While a third (33%) of ‘trapped’ renters state that getting on to the property ladder is their number one priority, not all appear quite as committed to this goal. Around one in four (23%) are most concerned with ‘living in a desirable area’ and, naturally, starting/growing a family (11%) and getting married (9%) take precedence for some. However, 16% say that their priority is ensuring money ‘for leisure time’ and 8% that they are able to take regular holidays, making up nearly a quarter in all.

Shipside concludes:
“Some are making big sacrifices and even putting plans of marriage or starting a family on hold in favour of owning a property, though some still see money for leisure and holidays as their number one priority. Perhaps their wish of owning a property seems so far out of reach that they have given up all hope? Or perhaps in George Osborne they have an unlikely Fairy Godmother as the Government’s new Help to Buy scheme may prove to be the incentive they need to start saving?”

Click here to learn more about Help to Buy

Property selling prices edge closer to asking prices

clairep — Thu, 18 Apr 2013 14:47:53 +0000

Rightmove research shows a narrowing of the average gap between last advertised asking price on site and sold price recorded with the Land Registry.

In December the discount stood at 3.39%. It has since narrowed to 2.95%. So what does this mean for buyers and sellers in the current market?

Rightmove director Miles Shipside:
“This indicates that sellers are negotiating less and buyers are willing or able to pay more” says. While the discount from the asking price on an individual property is very much a product of how realistic that price was, it is a sign of a recovering market if they are paying closer to what sellers ask.

"Obviously, we do not suggest that all buyers offer exactly 2.95% below the asking price or that all sellers adopt this as their maximum discount level, as the balance of power between buyers and sellers varies considerably across the many micro-markets of the UK.

"However, we do suggest that you seek the advice of an estate agent whose local market expertise can help you make an informed decision and help turn your property dreams for this year into reality”.

Read the full report here.

Spring on hold as London prices pause for breath

clairep — Mon, 15 Apr 2013 13:00:38 +0000

Following three consecutive monthly rises, new sellers in London have trimmed their average asking prices for the first time in 2013, albeit by a modest 0.5% (-£2,663).

Miles Shipside, Rightmove director and housing market analyst comments:
“From the perspective of both the weather and property price rises, spring appears to have been put on hold in the capital. The traditional spring-time boost to prices has failed to materialise in April, though with a track record of heady rises over the last 12 months it is perhaps not surprising that London is pausing for breath.”

This unseasonal price lull has resulted in the annual rate of increase dropping sharply from 9% in March to 6.2% this month. London is still by far the best performing region in England however, with its closest counterpart being the South East with a modest 1.1% rise.

Shipside adds:
“Property prices in the capital are exploring the upper waters, and often prices will calm for a while before breaking through to a different level. There is a limit to what many buyers can afford, and the traditional spring momentum has failed to carry it through the current barrier for the time being.”

The timing of the Easter break is also likely to be a significant factor with those who can choose when to sell more likely to postpone their marketing and enjoy a holiday over the Easter period. Sellers that have a more pressing reason to sell may not have that luxury, and typically they will also price more competitively given their greater sense of urgency. The number of properties coming to market is down by 4% this April, even excluding the abnormally low listing volumes seen during Easter week.

Shipside observes: “The snow and freezing temperatures perhaps induced thoughts of spending time in warmer climes, delaying would-be trader-uppers from coming to market. Those with a choice of when to sell often pitch their prices a bit higher than those who cannot put off the decision, so we might see a price bounce-back next month as London sellers belatedly spring into action.”

View the full report here.

Fourth consecutive monthly asking price rise

clairep — Mon, 15 Apr 2013 12:00:05 +0000

Rightmove reports that April saw a fourth successive monthly average asking price increase, with a 2.1% (+£4,996) rise continuing the trend seen so far in 2013.

June 2012 saw the highest ever asking price of £246,235, and this month’s average asking price is just £1,529 shy at £244,706. Furthermore, the average price of a property coming to market is up by 6.9% (+£15,717) so far this year. All regions have seen prices rise month-on-month except London, though this should be put into the context of prices in the capital outpacing the rest of the country over the last 12 months.

Miles Shipside, director and housing market analyst at Rightmove comments:
“Transaction volumes may be historically low but, paradoxically, new seller asking prices are within a grand and a half of a new record high. With mass-market buyers still sitting on the sidelines, the size of the active market is a lot smaller, making it easier for an upswing in activity to feed through to an upturn in prices. With London prices pausing for breath this month but likely to bounce back next, May looks like an odds-on bet to deliver a new asking price record. This should not be confused with an overall market recovery, as while spring may be here the ongoing chill of the recession is still in the air. However, it is true to say that more estate agents are reporting more activity in more segments of the market.”

The weekly run-rate of properties coming to market this month, even excluding the abnormally low listings seen during Easter week, was 28,179, down 4% on April last year. With average time on the market down from 83 days in April last year to 73 days this year, there is evidence that growing demand in the market is not being matched by the supply of new properties coming up for sale.

Shipside observes:
“In theory, the combination of more buyer activity and a greater willingness of lenders to lend should whet the appetite of those potential sellers who have been steadfastly stuck in the stalls in recent years. The result is a degree of upwards price pressure in some locations and market segments, benefitting those sellers who have taken the plunge, and in time will encourage more to follow.”

View the full report here.

April House Price Index Infographic

clairep — Sun, 14 Apr 2013 23:01:16 +0000

Rightmove’s April House Price Index shows that for the fourth successive month average asking prices have increased, with a 2.1% (+£4,996) rise continuing the trend seen so far in 2013.

To view the full report click here or read the April House Price Index blog story here.

Our infographic provides a breakdown of how prices are performing across each region and property type.

9 out of 10 homes on Rightmove within reach of new Help to Buy scheme

clairep — Wed, 20 Mar 2013 17:38:02 +0000

The Government today announced the launch of Help to Buy, a housing initiative that will enable home-movers to purchase a home with a 5% deposit.

The scheme will be available on new homes properties from 1 April 2013 and on resale homes from January 2014 and will apply to properties for sale at £600,000 or less. For further details please visit http://www.hm-treasury.gov.uk/10012.htm

Rightmove research finds that Help to Buy would apply to around 9 out of every 10 listings currently on the Rightmove website, including 97% of new build properties currently listed via a developer.

Rightmove director Miles Shipside comments:
“Over the last three years Rightmove’s research has consistently shown that raising enough of a deposit is the single biggest concern cited by those looking to get on, or trade up from, the bottom rungs of the housing ladder. It is encouraging that the Government appears to be going further than most anticipated in addressing the major issues in this area of the market. The extension of Help to Buy to the resale sector could also be crucial in enabling overlooked pockets of the housing market, such as second-steppers, to trade-up and help build chains across the wider market.”

Rightmove’s latest House Price Index recently reported a building in confidence and momentum in the property market with over 50% more enquiries from potential home movers being sent to agents and developers than a year ago. The latest survey of circa 40,000 potential home movers also found that 83% expected property prices to be about the same or higher in 12 months’ time, indicating a bedrock of belief that the worst travails of the housing market have passed.

March House Price Infographic

clairep — Mon, 18 Mar 2013 15:53:08 +0000

Rightmove’s March House Price Index finds that momentum continues to build in the housing market with several key indicators setting new post-credit-crunch milestones.

To view the full report click here.

Our infographic provides a breakdown of how prices are performing across each region and property type.

Transaction volumes on course to be boosted by buy-to-let activity

clairep — Mon, 18 Mar 2013 13:56:47 +0000

Rightmove research shows that rents are delivering average gross yields of 5.9%.

With some remortgage finance available at lowest ever levels, from as little as 2% for a two year fixed rate and 2.7% for a five year fixed rate, there is the possibility of a straight arbitrage of immediate return on money borrowed against your main residence.

Shipside comments:
“There are blindingly good returns on the right buy-to-let investment, with the Funding for Lending Scheme giving the possibility of an immediate and enticing profit gap between borrowing costs and available rental returns. With the prospect of capital growth in future years if you buy the right property, you can see why investors are piling in to the rental market – why wouldn’t they when it can offer a much better return than money in the bank?”

View the full report here.

Momentum grows

clairep — Mon, 18 Mar 2013 11:29:44 +0000

Momentum continues to build in the housing market with several key indicators setting new post-credit-crunch milestones. The net result is that, as we enter the spring market, new sellers’ asking prices are the highest ever recorded in the month of March.

Miles Shipside, Rightmove director and housing market analyst comments:
“In today’s turbulent world where economic crises seem more likely to re-appear than disappear, any market upturn will take longer to build home-mover confidence to the point that it starts to feed through to actual transactions. Even those who truly believe that the market has turned a corner may be unable to do anything about it due to lenders’ cautious risk profiling, a significant factor limiting the speed and strength of the recovery. However, with new sellers asking more than ever before as we enter the traditionally busy spring market and an expectation among home-movers of price stability or growth, there is now a bedrock upon which confidence and momentum appear to be building.”

The average price of a property coming to market is at a new March high of £239,710. The previous peak achieved at this time of year was set in 2008, just six months before the collapse of Lehman Brothers in September of that year. This new March record comes at a time when several of Rightmove’s indicators provide evidence of growing momentum in the market that should deliver an increase in transaction numbers this year. Rightmove’s latest Consumer Confidence Survey of more than 40,000 respondents shows that 60% expect prices to be ‘more or less the same’ in a year’s time and a further 23% believe prices will be higher. Only around one in nine (11%) expect prices to be lower.

Shipside observes:
“Positive sentiment on the future direction of property prices is a vital element in motivating more people to buy including those looking to trade-up. If they feel confident that prices aren’t going to drop, some will take the plunge, while those who are predicting price rises often judge it wise to act sooner rather than later if they perceive delaying will mean they pay more. Whilst outlooks on property prices differ and remain patchy according to location and property type, overall there appears to be an upturn in confidence”.

View the full report here.

Second-steppers feel the pressure of space-age-kids dilemma

clairep — Sun, 10 Mar 2013 23:01:03 +0000

Rightmove’s latest buyer report finds that almost half of the property market’s ‘second-steppers’ - those looking to buy for the second time - are struggling to accommodate their family needs while they endure a lengthy period on the bottom rung of the UK housing ladder.

Rightmove’s latest buyers’ survey finds that two in five (40%) second-steppers are concerned that their home is too small for their family, and a further 7% have even put off having children because their property simply isn’t big enough. With the average age of prospective first-time buyers and second-time buyers standing at 30 and 41 respectively, late entry onto the housing ladder and longer stays on its bottom rung mean second-steppers, although active, are increasingly becoming the property market’s ‘squeezed middle’, weighed down by worries over space, age and kids.

Miles Shipside, director and housing market analyst at Rightmove comments:
“Many second-steppers have had to shelve their family planning and home-moving ambitions since the onset of the credit-crunch over five years ago. Typical first-time buyer properties such as flats and smaller houses serve a purpose in getting a foot on the housing ladder, but don’t tend to be suitable family homes in the long term. This next step up the ladder is proving a difficult one for many to make. Second-steppers are the ugly ducklings of the housing market; overlooked for many government incentives, struggling to protect their equity if they bought near the peak, and now crammed into a home too small for their growing family needs.”

Rightmove also found that 11% of second-steppers stated they are selling to trade-up despite the fact that the current value of their property is less than they paid for it, highlighting their urgency to relocate to a larger home in order to accommodate their family.

Shipside adds:
“Diminished equity will seriously affect a second-stepper’s ability to raise a deposit that will attract the most competitive mortgage rates, and may even necessitate a second visit to the ‘Bank of Mum and Dad’ in order to move.”

View the full report here.

February House Price Infographic

clairep — Wed, 20 Feb 2013 13:59:34 +0000

Rightmove’s February House Price Index finds that there are signs of continued improvement in the health of the property market.

To view the full report click here.

Our infographic provides a breakdown of how prices are performing across each region and property type.