Rightmove Property Blog » house prices

New sellers ask over £250,000 for first time as South East ‘lifts off’

clairep — Sun, 16 Jun 2013 23:01:18 +0000

The national average asking price of a property coming to market is over a quarter of a million pounds for the first time.

The new record was achieved as prices rose 1.2% (+£2,957) in June, the sixth consecutive monthly rise this year. While London sets another new record of £515,243, continuing its upward trajectory, the biggest winner is the South East which sees a record price of £329,968 as a result of a whopping 14.8% increase over the first six months of 2013.

There is also early evidence of a wider recovery as asking prices in the north (North, North West, Yorks & Humber, East Midlands, West Midlands, and Wales) rose by 9.2% , almost keeping pace with the 10.6% seen in the south (Greater London, South East, South West and East Anglia) over the first half of the year. These increases, along with reports from agents and developers of a pick-up in transactions, suggest a wider and more sustainable recovery as the price buoyancy of the London market shows signs of spreading across the country.

Miles Shipside, director and housing market analyst at Rightmove comments:
“While this month sees several new price records, it’s the South East that has really started to lift-off. On top of that, the first half of 2013 saw little sign of the traditional north-south divide with the first-half asking price surge in the north almost equal to that of the south. The good news is that this indicates a wider upturn, albeit at historically low but increasing volumes. The bad news for would be buyers is that it has helped propel the average price of a property coming to market through the quarter of a million quid milestone for the first time.”

The national average asking price of a property coming to market is £252,798, beating the previous record of £249,841 set in May. Property market recoveries are traditionally led by London and, belatedly, the trend set in the capital now appears to be spreading as a broader housing market recovery is potentially on the cards. In price terms, this is the strongest start to a year since 2004, with both the south and north playing their parts with increases of 10.6% and 9.2% respectively. Unusually, London’s 10.9% (+£50,845) jump year to date has been surpassed by two northern regions; the North region at 11.0% (+£15,134) and the West Midlands at 11.3% (+£19,665). The South East is, however, the main beneficiary of the London boom, with the ripple effect contributing to a 14.8% (+£42,548) hike in the first six months of 2013.

Shipside observes:
“Although the South East has lagged behind the capital in recent years it is the biggest winner so far this year as, frankly, it has become ‘under-priced’. It offers real comparative value for buyers needing access to London but are priced out of London itself. While some northern regions outpaced London this year, the price gap remains daunting for those looking to up sticks and head to the bright but dazzlingly expensive lights of the capital. The average price of a property in London is still more than three times higher than in the north.”

Several factors have contributed to such a strong first half of 2013:

Consumer Confidence is key in the housing market. After a period of apparent economic stability internationally – or at least, less widely-reported turmoil and uncertainty – and some positive signs of an economic upturn in the UK, more home-movers appear willing and able to increase their financial commitments.

Increasing competition among lenders, underpinned by the Funding for Lending scheme, has encouraged new and repeat buyers to enter the market as they benefit from both lower interest rates and deposit requirements.

In real terms, national house prices have actually fallen over the last five years. While nominal asking prices are at record levels, adjusting for inflation shows that, bar London, they have actually fallen in every region since 2008.

Search activity on Rightmove continues to grow. More than 6 billion pages of property were viewed on Rightmove in the first five months of 2013 – up more than 20% on the same period last year.

Click here to view the full report.

June House Price Index Infographic

clairep — Sun, 16 Jun 2013 23:01:10 +0000

Rightmove’s June House Price Index shows that the national average asking price of a property coming to market is over a quarter of a million pounds for the first time.

To view the full report click here or read the June 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/2013/06/HPI_Infographic_JUNE_13.jpg"> src="http://www.rightmove.co.uk/news/files/2013/06/HPI_Infographic_JUNE_13.jpg" alt="Rightmove"></a><br /><br /> [Source: <a href='http://www.rightmove.co.uk'>Rightmove Property Portal</a>]<br />

How much is your property worth?

clairep — Thu, 13 Jun 2013 09:00:59 +0000

If you are thinking or selling or letting your property, a big factor in your decision making process is what your property is likely to achieve on the open market. This can help determine the budget you have for your next move.

A quick look on sold prices and Rightmove’s Price Comparison report can give you an indication of the properties you are competing against. Most of the records contain several photos and the property’s price history so you can judge how your home compares, both aesthetically and on price competitiveness.

The most accurate way to find out how much your property is worth is to invite local estate agents to your home to value your property. They are local experts who know your target market and have in-depth knowledge of the property market in your area.

Estate Agents take into account a range of factors when valuing your property. It is worth being aware of these as you can influence some of these factors. Below are a list of some of the most common factors Estate Agents take into account when valuing a property:

Location – proximity to transport links or schools and desirability of area

Condition of Property

Presentation of Property

Comparable Properties

Local Market Trends

Buyer Demand for your Property

Storage Space

During valuations Estate Agents can also give you tips on how you may want to improve the appeal and demand for your property so you can start preparing your property for market. To find out how much your property is worth, use Rightmove’s Valuation Request tool to get local experts to value your home and start turning your dreams of moving into reality.

May House Price Index Video

clairep — Tue, 28 May 2013 15:59:17 +0000

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

To view the full report click here.

Check out our video below to see Rightmove's commercial director, Miles Shipside, discuss the latest headlines from our House Price Index report, showing regional and national trends on UK property asking prices.

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>]

The Rightmove House Price Index – The Facts

clairep — Fri, 26 Apr 2013 09:00:13 +0000

The Rightmove House Price Index is released on the third Monday of every month, reporting the average asking price of new properties listed for sale in England and Wales.

Since launching in 2002 the House Price Index has grown to become a major voice in reflecting current trends within the UK property market. As well as the average asking price based on around 90% of new properties coming to market, Rightmove is in a unique position to be able to report indicators such as average time on market, stock per branch and weekly run-rate of new listings.

The average asking price is calculated for all new listings brought to market within the monthly reporting period. Rightmove do not seasonally adjust, so the data reported in the index reflects the traditional seasonal fluctuations of the UK housing market. For example the average asking price in February has been higher month-on-month than January in every year of the House Price Index, reflecting the increased optimism that New Year sellers tend to have in bringing their property to market.

The performance of a local property market can differ greatly from location to location, so the monthly change in the national average asking price may not reflect what’s happening in your own area. Rightmove always advise that you seek the advice of a local estate agent or lettings agent to get an expert of view on your local property market. However, there are certain trends and insights that can be picked up from the House Price Index that may be worth factoring in as part of your own research, especially in conjunction with Rightmove’s sold prices section which reveals exactly how much properties are being purchased for.

Did you know?

Rightmove’s first House Price Index was released in August 2002. You can read our first ever report here: http://www.rightmove.co.uk/news/house-price-index/previous-editions

In August 2002 the average asking price in London was £250,782. Today, the average asking price is just shy of double that at £493,635

The greatest year-on-year jump in average asking prices came in July 2004, when prices were 18% higher than July 2003

Want to know more about this month's results?

Infographic
Blog story
Full report

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.

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.

Rightmove in the press – February 2013

clairep — Fri, 22 Feb 2013 16:44:48 +0000

Rightmove's February House Price Index was recently released. It revealed that there are signs of continued improvement in the health of the property market.

Read the full report here.

Click to see how the national newspapers reported it:

The Times

‘Asking prices return to pre-credit crunch high’

Daily Telegraph

‘House prices 'hit five-year high'’

Independent

‘House prices near peaks seen before recession’

Daily Mail

‘Prices demanded by house sellers at their highest level since start of the financial crisis after 2.8% jump last month’

Express

‘Houses at a five-year price high’

Daily Star

Housing ‘revival’

City AM

‘London house prices up 1.2pc over February’

Evening Standard

‘House asking prices at highest level since 2008’

Jamie Theakston sells his renovated beauty

clairep — Thu, 21 Feb 2013 17:15:29 +0000

Radio and TV presenter Jamie Theakston has put his newly renovated property on the market.

Take a look around.

The Heart FM personality is said to be somewhat of an eager renovator, having sold his first project a few years ago and now selling his new masterpiece which allegedly took him over two years to complete.

The detached Victorian house in Chiswick is 5,100ft² of stunning family living space. The property mixes original features with modern open plan rooms and boasts five bedrooms, four reception rooms, a wine cellar and under-floor heating. Theakston’s eye for interior design is clear for all to see – we want to move in now!!!

Jamie, who previously restored a grade I listed Tudor mansion in East Sussex, lives in the West London property with this wife, two young sons and their cat (seen striking a pose in quite a few of the photos).

A quick look at Rightmove’s sold price section shows that he’s set to make a nice little profit for himself after all that hard work… the property was bought for £3.85million back in 2010 and is now on the market for £6.5million.

Look at house prices in your area now.

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.

New record but lowest February increase in London since 2009

clairep — Mon, 18 Feb 2013 09:50:30 +0000

Average asking price in London were 1.2% (£6,000) higher this month at £486,890, another new record for London. However, there are signs that some sellers will struggle to accelerate prices beyond this new high as the percentage rise is the lowest recorded in the month of February for four years.

Miles Shipside, director and housing market analyst at Rightmove comments:
“London buyers searching for this month’s fresh to market stock will face the most expensive average asking prices ever seen in the capital. It will perhaps come as little comfort that this is the most conservative monthly increase recorded in the month of February since 2009.”

Compared to a year ago, property coming to the market is 8.4% (£37,638) more expensive. There are signs that the pace of rises is slowing down however, with the current average asking price just 0.7% (£3,181) higher than it was three months ago. The new record in London is £486,890, surpassing the previous high of £483,709 set in November 2012.

Shipside observes:
“While London has been the outperform market of the UK and the first to recover from the credit-crunch, there is a barrier to what people can afford to pay and, indeed, are prepared to pay. It remains to be seen whether sellers can achieve their record new price aspirations, which will require buyers to find the extra money and justify to themselves the higher prices being asked.”

While the boroughs of Kensington and Chelsea (+1.7%), Westminster (+3.5%) and Hammersmith and Fulham (+4.5%) continue to hold ‘international appeal’ and outperform the norm, this month also sees the low to mid-range priced boroughs of Islington (+4.6%), Merton (+4.4%), Hackney (+3.7%) and Croydon (+3.7%) in the top five risers.

Shipside adds:
“With sellers having a real upper-hand in pricing power in the higher priced and most sought after locations, some buyer demand will ebb away from the most fashionable hotspots and flow into other boroughs. Buyers in the capital have a great track record of looking elsewhere to seek out new areas offering greater value and potential.”

Click here to view the full report.

Sprightly start to 2013

clairep — Mon, 18 Feb 2013 09:41:58 +0000

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

At £235,741 the average price of newly marketed property is the second highest ever seen in the month of February, just £2,115 shy of the February record set in 2008 prior to the collapse of Lehman Brothers. There are also encouraging signs of life among home-movers too as the Rightmove website recorded its busiest ever month in January.

Miles Shipside, director and housing market analyst at Rightmove comments:
“There has been a sprightly start to 2013 and, while market activity remains patchy across locations and property type, some agents are reporting their busiest new year since the onset of the credit-crunch. While encouraging, it’s far too early to pop the champagne corks as certain sectors will remain on ice until the return of wider-spread mortgage availability.”

New sellers increased their asking prices by 2.8% (+£6,312) this month, pushing the national average up to £235,741. Whilst it is usual to see asking prices increase between January and February, this is the highest average price recorded at this time of year since 2008. This illustrates the slow but steady recovery in prices, which has taken five years, though it must be noted that the national average can mask the divide in the market between those with access to equity and finance and those without. Whilst all regions have recorded a rise this month, some of the more dramatic increases reported in the northern regions are effectively ‘rebounds’ from substantial falls measured on the low levels of new listings in November and December.

The start of a new year, combined with more new stock coming to market after the Christmas lull, traditionally boosts activity, though in recent years this has been tempered by the economic backdrop. However, this year Rightmove has recorded its busiest ever month in January with those planning a move searching in record numbers and contacting agents with more follow-up enquiries than ever before.

Shipside observes:
“Interest in property has hit such a peak that Rightmove is now the sixth busiest website in the UK¹. Pages viewed on the Rightmove website reached a new record high in January, up by over 20% year-on-year and, importantly, resulted in more enquiries to agents and developers than ever before. While the journey between expressing interest and closing the deal has many more twists and turns than before the credit-crunch, it is a sign of increased confidence and helps build a momentum that has been sadly lacking in many local markets over the last five years.”

Click here to view the full report.

What an ‘average house price’ can tell you about your local agent and the market

clairep — Mon, 14 Jan 2013 17:57:07 +0000

Some people get very cross with broad headlines about the national housing market.

They complain that for thousands of people their local market bears little resemblance to the ‘average house’ in the UK. Louis D’Espagnac (@PropertyExpert1 on Twitter) director of award-winning Romans estate agents in Reading said recently “Good estate agents & homeowners need to base their figures & market trends on what’s happening on their own doorsteps or their postcode as a barometer as to what the property market is doing in their specific town or village. It’s all about micro-markets & breaking the statistics down to get a true picture of the market.” Living legend and Chartered Surveyor Michael Day (@Integraps) weighed into the debate: “Big picture fine” he said “but so much concentration, small sample sizes & lazy journalism on national stats, can mislead” and he’s right. It’s very easy for hacks working on national titles and broadcasters to generalise. The groan that greets the Channel 4 national weather forecast reminds us how hopeless it is if all you really want to know is if you need to pack a brolly in Norwich tomorrow.

However, it isn’t easy in three minutes or in just a few paragraphs to summarise the property market when your audience is spread across 24 million homes and four countries. If you want local news, get a local paper. If you want the local weather watch Look North! But it turns out that national trends can be surprisingly useful at a local level - even if it is only to help you judge the success or failure of your own local market. Yet still D’Espagnac persists; “National statistics are of no use to the homeowner in the North East nor in London or the Thames Valley”. he says but I'm not sure he's being fair.

Using the latest numbers supplied by The Land Registry which are accessible to all courtesy of the excellent tools that rightmove.co.uk provide free in their ‘House Prices’ section, it’s possible to see how many homes have been offered for sale each month in any given area. You can see at a glance how many new properties have been added AND you can see the number sold. These figures will allow you to calculate the chances of selling your home in the next month and the proportion of properties that sells every year.

Nationally I calculate that if you put your home on the market today you have an 11.5% chance of selling it in the first four weeks. Leave it on the market for a year and this rises to about 44% of all homes that offered for sale eventually selling. The fact that most don’t sell comes as a surprise to some but it shouldn’t. Many sellers only chose to go to market because they’ve found another home they prefer and, if they are unable to make that purchase for whatever reason, they withdraw the property. Some will only sell if they get 'their' price which in a challenging market isn’t always easy. But how much help is this ‘national’ statistic of 44%?

With Louis’ help I looked at Reading in more detail to uncover what has come on to the market and what has sold. Over the past two years 305 properties are typically on the market in any one month of which around 44 sell. When looking at the last two years we can see that 1,056 (43%) of the 2,472 homes offered for sale in RG1 have sold.

Estate agents by nature must be optimists - their glass must be half full. No one is going to instruct an agent who thinks we’re going to hell in a handcart! Just as when you are pulled over by the police your recollection of your speed can be at odds with the officers’ laser device, so it can be when agents are asked about their own market performance.

Sites like Rightmove and the Land Registry now make the housing market far more transparent. They help us all, buyers and sellers to understand that not all agents and homes are the same. This data enables us to judge which agent we should instruct by providing data on just how good or bad the rest are. Just as you need a league of other clubs to be able to judge the quality of your football team, you need to know how well the rest of the market is doing when you choose your agent.

So, whilst the price of the average house may seem only be of real interest if you ever find that “average house" you can also use the trends to ensure you make the right choice when it comes to choosing an agent, fixing a guide price or indeed making an offer.Remember, when it comes to property as with so many other things “price is what you pay, value is what you get”.

Happy house hunting.

Henry Pryor is a buying agent and housing market commentator.Read his blog here http://henrypryor.com/

Only 17% of sellers would invest in a house makeover, even if it meant they would achieve a higher price

clairep — Thu, 22 Nov 2012 17:03:43 +0000

Competition among sellers for mortgage-ready or cash buyers looks set to remain fierce in many markets in 2013. One option for sellers is to prepare their property for sale by spending a few thousand pounds, offering prospective buyers a ‘ready to move into, little to do’ experience. With many buyers having put their cash towards raising a deposit, they have little to spend on improvements when they move in.

However, Rightmove’s research has found that only 17% of sellers would be willing to spend on a ‘make-over’ even if they stood to gain financially by achieving a considerably higher price. Rightmove questioned sellers on what their reaction would be if they knew spending around £5,000 on a house make-over would mean gaining around £10,000 more on the sale price. Whereas 17% stated they would ‘definitely do it’, 18% stated that they would prefer to leave it for the buyer to make any alterations to the house after the sale. 2 in 5 (40%) respondents would do only some repairs, and 15% stated that although they would like to they could not raise the funds.

Rightmove director and housing market analyist Miles Shipside comments:
“As well as the ‘hassle factor’ of home-improvements, this also reflects many sellers’ lack of access to funds to carry out what would be financially astute improvements. It also highlights one of the legacies of the downturn with many sellers suffering from shrinking equity pots, limiting their ability to raise relatively small lump sums. Diminished or negative equity is a Catch-22 for sellers, as it potentially deters them from making the investment to increase the value and sale-ability of their property and maximise their gains or cut their losses. Agents report that properties that are closest to ‘showhome condition’ and ready to move into are selling more easily and achieving the highest prices, as buyers have little spare cash for improvements. Those sellers that can attempt a mini-makeover as a tactic in 2013 should consider putting some DIY products on their Christmas list.”

Click here for more on this month's house prices.

For more information about London house prices click here.