Industry reaction to the Rightmove House Price Index

Index

The latest index shows that:

        • The average price of property coming to market jumps by 0.3% this month (+£852) to £341,019, which is 7.6% higher than in January 2021, the highest annual rate of price growth recorded by Rightmove since May 2016
        • First-time buyer asking prices hit a new record of £214,176 after a monthly jump of 1.4%
        • Strong demand and continuing low numbers of available homes for sale set up the housing market frenzy to continue into the start of 2022, with early-bird sellers benefitting from increased buyer competition:
        • The number of buyers enquiring about homes is 15% higher than the same time last year
        • The number of available homes for sale per estate agency branch drops again to a new record low of just 12
        • As a result, competition among buyers is almost double what it was at this time last year
        • However, there are early signs that more property choice is on its way, with the first working week of 2022 being the busiest start of the year ever for people requesting agents to come out and value their homes:
        • The number of home valuation requests in the first working week of 2022 is 44% up on the same period last year, and 48% up on the same period in 2020

Managing Director of HBB Solutions, Chris Hodgkinson, commented:

 

“There’s certainly been no New Year’s change where the UK property market is concerned and homebuyers are still swamping the market while house prices continue to defy the ‘what goes up must come down’ mantra.

In fact, with stock levels remaining low, this fresh wave of demand is pushing asking prices even higher than the stamp duty fuelled thresholds of last year.

When you also consider that the cost of borrowing is still very low, we can expect more of the same where property market performance is concerned in 2022.”

 

Director of Benham and Reeves, Marc von Grundherr, commented:

“There have been no signs of a sluggish start to the year for the property market and not only are we seeing a very strong level of buyer activity, but we’ve also been inundated with requests from potential sellers keen to make the most of these buoyant market conditions.

We’re now seeing a strong level of activity returning to the London market and the capital’s forecast is far brighter for the year ahead, having been uncharacteristically left in the shadows during the pandemic house price boom.

Overseas buyers are returning in their number and the capital is hotting up as the time to sell a home reduces and stock availability comes under pressure.

If buyers are quick there is still an element of ‘old stock’ that has been stuck on the market and these opportunities can potentially be snapped up at relatively decent price levels – for now.”

 

Founder and CEO of GteAgent.co.uk, Colby Short, commented: 

“Many home sellers will have listed their home prior to the festive break in anticipation of a fast start to the year and this proactive approach is now paying off as many are already accepting offers on their homes.

However, for those buyers who are struggling to find their ideal home, there is hope for the year ahead. Now that the dust has settled following the final stamp duty holiday deadline, we’re seeing a significant increase in the number of sellers heading to market.

So we can expect to see a good level of fresh stock materialise over the coming months, bringing greater choice to buyers and adding yet further fuel to the house price growth furnace.”

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