What’s the latest information on house prices?

27 April 2022 - 8:54 am

April 25: Rightmove Reports Record Average Prices Topping £360,000

  • Average property price hits record £360,101
  • 9.9% price growth in year to April
  • Properties selling faster than ever
  • 73% of transactions chain-free so far in 2022

The average price of a UK home hit a record level for the third month in a row in April 2022, according to data from property portal Rightmove.

Its house price index shows asking prices growing 1.6% month-on-month, or £5,537, bringing the average property price to £360,101 in April. Annual price growth stood at 9.9%.

Rightmove says the average property price has jumped by more than £19,000 in the past three months, the largest quarterly increase it has recorded. And property values are at record levels in each of the three market sectors it covers – lower, middle and upper – only the second time since 2007 the company had reported this scenario.

Quick sales

It adds that properties are selling faster than ever. In April this year, the average length of time to sell was 33 days, less than half the 67 days recorded in the same month three years ago. Rightmove says more than half (53%) of properties are selling for over their final, advertised asking price.

Tim Bannister, Rightmove director of property data, said: “With three new monthly price records in a row, 2022 has started with price-rise momentum even greater than during the stamp duty holiday-fuelled market of last year.

“The economic headwinds of strongly rising inflation and modestly rising interest rates are being kept at bay by the even stronger tailwind of property market momentum that has carried over from last year.”

Chain-free transactions

A separate report from estate agents Hamptons, has found that a record proportion of UK homes are being bought by buyers without a home to sell.

It found that, so far in 2022, nearly three-quarters (73%) of all buyers have been chain-free. This compares with 69% in 2021 and a low of 65% in 2010.

Hamptons attributes the rise in chain-free buyers to an increase in the proportion of homes bought by first-time buyers and investors.

Aneisha Beveridge, head of research at Hamptons, said: “Given chain-free buyers tend to complete quicker and sales are less likely to fall through, they are fast becoming the preferred option for sellers.”

 

First-Time Buyers To Be ‘Paying Mortgage In Retirement’

The next generation of homeowners may be paying off their mortgages into retirement, new data from our mortgage partner Trussle has revealed.

According to Trussle, house price inflation which has caused the average age of a first time buyer to rise to 32 from 29 a decade ago is to blame.

Equally, a 75% year-on-year increase in first-time buyers taking out 35-year mortgages during the stamp duty holiday, in order to combat rising house prices. Over 60,000 first-time buyers did so.

The stamp duty holiday was introduced 8 July 2020 to encourage the purchase of property and buoy the housing market. The holiday came to an end on 30 September 2021 for England with the equivalent Land and Buildings Transaction Tax (LTT) holiday in Northern Ireland simultaneously ending.The  LTT holiday in Scotland drew to a close on 31 March 2021 and on 30 June 2021 in Wales.

The average house price in the UK is now £277,000 according to the latest Office for National Statistics figures, and according to Trussle most mortgage lenders require a minimum of a 10% deposit on a property.

A homebuyer purchasing a property for £277,000, who provides a 10% deposit on a 2.25%  rate mortgage can expect to pay £860 per month over the course of 35 years.

Alarming trend

Amanda Aumonier at Trussle says: “This is an alarming trend that has been brewing for years. When purchasing a home, buyers naturally think about the here and now, which typically means looking for ways to keep their payments as low as possible.

“But, while taking out a longer term mortgage can be an effective way to keep short term costs low, you will end up paying more back in the long term. Not only this, but you could also still be paying off your mortgage during a period of life when your income begins to drop.”

However she says overpaying on your mortgage even by a little can help clear your debt faster: “For those able to get ahead of their mortgage payment, overpaying on your mortgage can significantly cut the term and therefore overall cost of your mortgage. Overpaying by as little as £50 each month can shave two years off your mortgage and save you £5,000.”