The property market boom: what will happen next?

To sell or not to sell? Where are we in the property cycle? Are house prices still increasing? We're here to help… 

It’s no big secret that the housing market is at a fever pitch; homes are now selling within 45 days of going on sale^ - weeks sooner than the average time required to sell back in January. There are also huge numbers of buyers joining the market each week, with mortgage enquiries and applications increasing every month. 

If you’re selling or considering a move in the future, this article is here to help you understand the current marketplace, and how you can make the most of the opportunity.

What’s happening to house prices? 

Frankly, if you want to get the optimum price for your property, now is a great time to sell. Asking prices are at a record high and up in all regions compared to before the pandemic. According to recent research from our friends at Rightmove, asking prices have risen the fastest in Wales, followed by the North West of England.

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House price inflation at the strongest in seven years

The average asking price of a property has now reached a record high of more than a third of a million pounds (£333,564) in Great Britain*. According to Halifax, the annual house price inflation was actually at its strongest level in nearly seven years. If you’re thinking of selling, when was the last time you had your home valued? It could be worth more than you think.

High demand for two and three-bedroom homes

Sellers with two and three-bedroom properties are in a strong position. These types of properties, in areas where prices are below the regional average, have seen the largest increase in interest from potential buyers.

Sellers with homes in the seaside resort of Scarborough are in luck, as this region has seen an increase in interest from potential buyers of 142%*. Equally, demand has soared by 111% and 108% in Forest Heath in Suffolk and Falkirk in Scotland. 

Demand from buyers continues to skyrocket

Buyer demand is at an all-time high. Lockdown has also resulted in an unexpected build-up of savings for many, which can now be used to fund bigger deposits for bigger properties.

In fact, demand has spiked so much in recent months resulting in increasing prices and sales. If you’re thinking of selling, the demand from buyers also means you’re in a position to get a good price and a quick sale if you come to market now.

What does the current property market mean for you as a landlord?

Across the UK, we are seeing huge demand for rental homes in this increasingly busy property market. Asking rents outside London keep rising. They have now hit another record high, at an average of £982 per calendar month. This is the highest annual rise since 2015. It’s an incredibly profitable time to be a landlord if you invest in the right areas.

What does the current property market mean for you as a seller?

Put simply, we’re in the boom phase of the property market cycle. This means it’s a fantastic time to sell as house prices continue to increase. It also means it’s incredibly important to know the value of your property.

The current conditions are so great for sellers that many homeowners are drastically undervaluing their property. Zoopla recently claimed that the average UK homeowner undervalues their home by *£46,000. We can’t stress enough the importance of understanding your property’s worth.

Will I definitely find a buyer?

As mentioned above, the number of buyers entering the market continues to increase - we have seen over a 500% uplift in website visitors compared to this time last year (Countrywide Research).

Buyers are also aided by the growth of the mortgage market in recent months, with the return of 95% mortgages to the market having a buoyant effect - especially among younger applicants. According to Experian, mortgage applications are up by 11% on this time last year**. 

Whilst there’s no guarantee of finding a buyer for every single property, working with a reputable estate agent who is local, has a good track record, and a database of buyers can make or break the process.

Final thought

By now you know it’s a great time to be a seller. In May, almost all areas of the UK experienced an acceleration in annual house price inflation. If you list your home now it will stand out and attract a plethora of buyers. 

One of the most important parts of the sales journey is knowing the value of your property. That’s why it’s paramount that you get your home valued by an expert - which is quick and easy and can be booked here.