Rightmove predicts that house prices will continue to rise after it revealed that asking prices increased by 0.3%* this month, according to Rightmove’s latest House Price Index, following a white-hot start to the year for the property market.
The average price of a property coming to market has increased by £852 in just a month, a 7.6% increase in 12 months and the highest annual price growth recorded since 2016.*
The housing market is experiencing its busiest start to the year, with the number of property enquiries up by 15%* from this time last year. Asking prices are close to hitting new record highs and are within 1% of the record high set in October 2021.
What Will Happen to House Prices This Year?
The combination of stronger buyer demand combined with a shortage of available properties means that the market is likely to remain healthy for a while to come, due to a lack of supply of good properties on the market.
Factors such as a lack of housing supply and a range of cheap mortgages available mean buyers are pushing themselves to ensure they don’t miss out, and asking prices are continuing to climb as sellers take advantage. This means that buyers are willing to spend more money to guarantee they get their dream property.
Which Areas Have Demand Increased the Most?
Demand in rural areas has increased significantly because of the pandemic. According to Moveable, 41% of home movers no longer consider commute times when searching for a property, and 41% of homeowners in cities intend to move to rural areas in the near future.
In the meantime, the supply of homes for sale isn’t keeping up with demand, and prices are expected to rise rather than fall.
Your home is likely to have significantly increased in value in the last year. Book a valuation to find out how much you could get for your property.
*According to Rightmove’s latest House Price Index
** GOV.UK statistics