Houses in Yorkshire reach new record asking price amid surge in demand for 'gold dust' family homes

A surge of southern home buyers in a "race for space" is further driving demand in Yorkshire, experts suggest, as new records are once again set for the price of property coming to the market.

Homebuyer demand, particularly in the North, continues to "massively" exceed supply, Rightmove has said, as the average asking price nationwide rises to a third of a million pounds for the first time.

In Yorkshire, where prices have risen more than 10 per cent in a year, the average home is now marketed at £216,614, according to its May's house price index, and sells in just 42 days.

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Tim Bannisters, Rightmove's director of property data, said the pandemic has changed many aspects of what people want from their homes, adding that the "pricing pendulum is swinging away from London towards the North".

Asking prices have risen more than 10 per cent in a year in Yorkshire, according to Rightmove's May house price index

Family homes with more than three bedrooms were like "gold dust" in some areas, he said.

"The pandemic has given a greater focus on the home, and in 2020 we saw a surge in southern coastal and rural areas," said Mr Bannisters.

"So far 2021 is proving to be the year of the northern mover, not only satisfying their pent-up housing needs, but in doing so also narrowing some of the huge price gap with London."

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Asking prices have risen more than 10 per cent in a year in Yorkshire, according to Rightmove's May house price index

House sellers were typically asking for a record £333,564 in May, Rightmove's house price index found, a rise of 1.8 per cent since the previous all-time high seen last month.

Prospective buyers are now faced with record prices for newly marketed properties in all areas outside the capital, with three regions, Wales, the North West and Yorkshire, seeing double-digit increases.

By contrast, asking prices in London are at a "virtual standstill", it found.

Mark Manning, managing director of Yorkshire-based Manning Stainton, said the region was seeing a continued surge in new buyers coming to the market, particularly from the South.

Asking prices have risen more than 10 per cent in a year in Yorkshire, according to Rightmove's May house price index

"This surge in buyer activity combined with a relative shortage of new properties coming to market has had the inevitable effect of creating a significant surge in prices with buyers clamouring to get their hands on most listings that hit the market," he said.

"We can see little sign of this abating and would predict that even with the end of the present stamp duty incentive that prices will continue to rise through the rest of this year and likely beyond."

Analysis

The Rightmove analysis suggests the strength of the market has enough momentum to shrug off the imminent end of the stamp duty holiday this summer.

While average London house prices are still 2.9 times higher than in the North, the findings show, this ratio is now at its lowest level since 2013 as the divide narrows.

The housing market has defied expectations to prosper over the pandemic, as more people consider a move and with low interest rates combined with stamp duty holidays.

Agents, speaking to Saturday's Property Post, said demand for houses was in many areas outstripping supply, particularly in places such as North Yorkshire with a "red hot" market.

As lifestyles have changed, more people have broadened their horizons, they said, seeking spaces with access to the countryside and where they can work from home.

'Race for space'

Becky Munday, of Munday’s Estate Agents in London, said it was no surprise the North had seen the biggest gains.

People were now prepared to go further in their "race for space", she said, freed of the chains of traditional commuter barriers and more willing to work from home.

"The window of opportunity for sellers may be closing soon, however, as a wave of newly vaccinated homeowners - who feel more confident about listing their homes now the virus is under control - is set to join the house moving frenzy and level up the playing field.”

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