The average price tag for a home hit a new high across all market sectors in October – and in all nations or regions of Britain, according to property website Rightmove’s latest findings, with a 1.8 per cent increase averaging £5,983.
It marks the first time in more than 14 years that new records were hit for all three property types analysed in all areas, with the average asking price in Yorkshire and the Humber now at a record £221,291.
Estate agents in the region believe prices, although continuing to rise, will do so at a steadier pace, while Tim Bannister, Rightmove’s director of property data, said competition remains fierce.
“Although more properties are coming to market, the level is still not enough to replenish the stock that’s being snapped up,” he said.
“Consequently, new price records have been set across the board, with every region of Great Britain and all of the three market sectors of first-time buyer, second stepper and top of the ladder hitting all-time highs.
“This ‘full house’ is an extremely rare event, happening for the first time since March 2007.”
Markets have been “heavily” boosted by the stamp duty holiday even after it drew to a close, experts have said, while the pandemic has led to record demand for buyers seeking larger homes.
The average price tag on a first-time buyer home hit £210,672 in October, according to Rightmove, while for those on the second step of the housing ladder it reached £315,486. For larger, family-sized homes at the top of the market, the typical price tag topped £630,819.
Mr Bannister said stock shortages were seen after the first lockdown last year and look set to continue.
The number of sales being agreed was up by 15.2 per cent in September compared to the same period in 2019, Rightmove said.
A continuing imbalance, with demand outstripping supply and leading to record prices, presents an opportunity for owners looking to sell and cash out if they are downsizing or not needing to buy another property, it added.
Nick Barnes, head of research at Chestertons, believes the end of the stamp duty holiday and the Government’s furlough scheme could act as a “break” on buyer demand, easing pressures on price growth.
Mark Ross is managing director of Sheffield and Chesterfield estate agent Redbrik.
He said: “Stock shortages continue to drive prices upwards, though accurate pricing rather than over-pricing is very important to get prospective buyers through the door. We expect prices to continue to rise, albeit at a steadier pace,” he added.
“This should give buyers and sellers more confidence to come to the market as they better understand the less frantic conditions.”