UK house prices have risen over the last month at the fastest rate on record for the time of year, new data suggests.
Research from Rightmove indicates that the average price of properties coming on the market has increased by 2.3% over the last month, with the average asking price now £306,810, a rise of £6,785 since Boris Johnson’s General Election victory on 12 December 2019.
The so-called ‘Boris Bounce’ has been attributed to the property price increase, providing a period of stability following the uncertainty surrounding Brexit, according to Rightmove.
Sellers now reportedly feel more confident about the housing market, with nearly 65,000 UK properties marketed over the last month. The number of sales increased by 7.5% between 13 December and 15 January compared with the same period last year.
Miles Shipside, a director at Rightmove, said of the findings: “The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home movers to hesitate. There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market.”
The data supports findings from Nationwide last week that showed house prices increased by 0.1% month on month through 2019.
First-Time Buyers
While the healthiness of the housing market is reportedly on the up, first-time buyers are still facing crippling house prices. The average two-bedroom property now has a national asking price of £193,103, and this could increase to £482,741 over the next 30 years.
While Shipside acknowledged that first-time buyer activity has remained consistent, he added that: “the downside of this high demand is upwards price pressure, with the average price of typical first-time-buyer property hitting a new record high”.
First-time buyers struggling to get on to the housing ladder, may find that self build offers them the opportunity to create a home that meets their needs and requirements, often saving up to 30% on market value.
Self builders also typically enjoy a profit of 25% on their investment, as reported in the Homebuilding & Renovating Self & Custom Build Market Report 2017.