The average price of houses coming to the market has surged by £2,484 as buyer demand reaches record levels, according to Rightmove’s latest House Price Index. With more people spending time indoors during lockdown, it seems Britons are keen to upgrade their homes. The Government’s recent extension of the stamp duty holiday also seems to have spurred buyers into taking action.
The latest house price index suggests that the number of potential buyers enquiring about each available property in the month is at a record.
Demand is also 34 percent higher than it was during the same period a year ago.
Rightmove has also recorded a whopping average of seven million daily visits to its website in February, which is 40 percent higher than February 2020.
Tim Bannister, Rightmove’s Director of Property Data said any concerns of a “cliff edge” have now disappeared largely due to the stamp duty (SDLT) holiday extension and because of the already high level of buyer demand sparked by lockdown.
He said demand will be further boosted in April thanks to the Government’s latest incentive which will see lenders be able to bring back five percent deposit mortgages.
Group CEO of Enness Global Mortgages, Islay Robinson, said competition is high for homes at the moment so it’s important to be prepared.
He said: “Competition for homes is high at present as buyers continue to enter the fray on mass.
“With so many buyers fighting it out for so little stock, it’s vital you ensure you are in a proceedable position before entering the ring.
“All too often, buyers look to secure their dream home without as much as a mortgage in principle, the result of which is often the crushing disappointment of realising they simply can’t secure the required level of finance.
“Although the market is extremely hot at present, many lenders are still wary of the ongoing impact of the pandemic and so they’ve tightened their buyer eligibility criteria considerably.
“The best possible start to your house hunt is to get an idea of what you can borrow, what you can afford to borrow and where this places you in the market in terms of property purchasing potential.”