U.K. Home Sellers Ramp Up Prices in Strongest Ever Spring Market
Every part of the country except London and Scotland has seen values rise more than 10% over the past year.
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U.K. house sellers are enjoying the strongest spring market on record, with prices at all-time highs and buyers significantly outnumbering available properties.
That’s according to property website Rightmove, which said average asking prices broke through the 350,000-pound ($460,000) barrier this month for the first time after jumping 1.7%, the biggest increase for any March since 2004. Every part of the country except London and Scotland has seen values rise more than 10% over the past year.
The surge is being driven by a worsening shortage of homes for sale. There were more than twice as many buyers as sellers this month, the biggest mismatch ever recorded by Rightmove. An unprecedented 22% of homes put up for sale are finding buyers within a week.
“All sectors of the market are experiencing very brisk conditions and we expect the strong market to continue until economic forces combine to move the supply and demand balance closer towards equilibrium,” said Tim Bannister, head of property data at Rightmove.
He cautioned, however, that the headwinds facing the economy “seem likely to remove the current market froth” in the second half of 2022. These include rising interest rates and a deepening cost of living crisis as inflation soars. How the housing market will be affected by the “abhorrent and devastating” war in Ukraine is currently unclear, the website said.
Demand for larger homes with room for an office is particularly acute as the end of the five-day-a-week commute means many workers are no longer tied to urban centers.
That’s creating new hot spots in areas such as as Shropshire, North Cotswolds and Suffolk, according to Kate Eales, who oversees the regional offices of estate agent Strutt & Parker.
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