Rightmove has indicated that the average asking price in England has increased by an average of 1.9% (+£6,266) in June, compared to March data. The average house price in England is now valued at £337,884.
Rightmove’s statistics cover 95% of the market and these latest results indicate far more resilience and bounce back than had been expected.
Their monthly June House Price Index also highlights the following:
There were over 175,000 sellers that could not put their home for sale between 23 March and up to 12 May (the housing lockdown period). However, Rightmove has seen record number of owners asking for valuations.
The number of sales agreed has recovered from a 94% drop to the latest daily rate of just 3% down on 12 months ago:
Since the market was re-opened on 13 May, 40,000 new sales have been agreed.
Analysis of new sales agreed indicates an upward price pressure with buyers agreeing to pay 97.7% of the asking price on average, an improvement from 96.6% in February.
The number of people phoning and emailing estate agents hit a new daily record, 40% above the level seen in early March.
There has been an online traffic boom because of home mover activity, with Rightmove experiencing their 10 busiest ever days in May and June.
Miles Shipside, Rightmove director and housing market analyst says:
“Following the initial shock of the early reopening of the housing market, England is getting moving again with a boom in traffic on Rightmove. There are no signs of panic selling or even a price dip. Some sellers who had agreed a sale before lockdown have been worrying that their buyer may try to re-negotiate with a reduced offer. On this evidence buyers may now be trying to exchange quickly, as there are signs of high pent-up demand and upwards price pressure, rather than downwards. Lenders may also have been concerned about price instability affecting the risk profile of their low-deposit mortgages, so hopefully this will give them more confidence to increase their range of first-time-buyer products.”
"After three months of speculation about prices we now have a month’s worth of detailed data showing the market bouncing back, and currently with a modest degree of upwards price pressure showing that those buyers hoping to negotiate hard may find their offer rejected in the current market.
The number of properties coming to market saw the most recent available daily rate exceed the same day a year ago, but the 175,000 would-be sellers who were unable to come to market while it was closed means that we will be playing catch up for the rest of the year. Some of those 175,000 now appear to be taking action, given the record number of Rightmove valuation requests to agents. The figures at present show an activity boosting and price under-pinning dynamic between supply and demand, driven by low mortgage rates and pent-up housing needs. This positivity will be challenged when unemployment spikes upwards or if mortgage lenders start to pull back from the market. The early release from housing lockdown has helped to get England moving again, but we’ll have to wait until the housing markets in Wales and Scotland are similarly released to see if the whole of Britain gets moving.”
The release of the Spring pent-up demand, has been fuelled by those who are unhappy with their existing home and looking for more space and a bigger garden. This theme has been reported consistently by various industry experts as well as in consumer surveys since lockdown began.
Estate Agent Perspectives
Rightmove share a number of estate agent perspectives, including:
We’ve experienced brisk levels of activity since the reopening of our branches in England late last month. So far in June we’re seeing more buyers register with us than during the same period last year – leading to increased levels of new instructions and sales agreed so far this month. Notably there is strong demand from first time buyers despite a shortage of higher loan to value mortgage products. Clearly there is an element of pent-up demand created by lockdown, but it would seem that the underlying sentiment within the housing market remains positive.”
“Where we live is one of the most important factors in life and the COVID-19 lockdown has forced everyone to assess their choices, and given many the time to consider alternatives. As soon as the restrictions on viewing property were lifted in the middle of May we received many more enquiries about properties for sale by our national network of branches than we expected. Having introduced virtual viewings and stringent ‘safe agent’ viewing guidelines, we are prepared for what is proving to be a very busy time.”
To read more about Rightmove's June index, click here.
As usual, we'd love to hear your thoughts about this positive news and whether this will persuade you to take the plunge to firstname.lastname@example.org.