RightMove Price Report

By Tim Banister of Rightmove

Our House Price Index was released to the media this morning and gives a national picture of house prices and activity over the past few weeks. For lettings, our quarterly Rental Trends Tracker released last week gives an insight into what we've seen in the rental market over the last quarter.

Here are some key facts to share with your team:

SALES
New price record as Wales and the north lead the way and London stands still

• New records continue to be set as the average price of property coming to market this month jumps by 1.8% (+£5,767), to a third of a million pounds (£333,564)
• Average London house prices are 2.9 times higher than prices in the northern areas of Great Britain, and although still large this is the smallest ratio recorded by Rightmove since 2013
• While London prices have stood still (+0.2%) since the first lockdown, areas further north have seen double-digit increases, due to the shortfall in supply that suits people’s changed needs and lives:
• Wales leads the way at +13.0%, followed by North West (+11.1%), and Yorkshire & the Humber (+10.5%)
• The north sees greater imbalance between demand and supply than London, with people more likely to move locally and some more able to afford to upsize

• Asking rents in almost two thirds (65%) of areas in London are lower than they were five years ago, compared to just 4% of areas with lower rents across the rest of Great Britain
• London is the only region where asking rents are lower than five years ago, down by 2.3%, while the East Midlands has seen the biggest rise, up by 19.3%
• Nationally asking rents outside London have hit another record high, at £982 per calendar month, up 4.2% on Q1 last year and the highest annual rate since 2015
• Available rental stock in London is up by 19% compared to this time in 2019, while outside the capital the fast-paced market has led to available rental stock being down by 54%
• The time it is taking to let a property is at its fastest pace ever in seven regions, with the South West being quickest at an average of just 14 days to agree a tenancy

Last year’s unexpected mini-boom is rolling on into 2021, with new price and market activity records defying many predictions. Buyer affordability is increasingly stretched, but there’s obviously some elasticity left as many buyers are squeezing their way into higher price bands. The pandemic has given a greater focus on the home. In 2020 we saw a surge in southern coastal and rural areas. So far, 2021 is proving to be the year of the northern mover, not only satisfying their pent-up housing needs, but in doing so narrowing the price gap with London.