Recent data release by Rightmove has indicated that property prices in the UK across all property types and more importantly, in all regions have recorded the highest rise in value since 2007.
Highest price rise since 2008 financial crisis
The increase in value of property in October, is particularly important as this is the greatest rise in property prices since the 2008 crash and the Great Recession that ensued and highlights the growing strength of the UK property market.
Strong market fundamentals
Despite the enforced halt in the market stemming from Covid-19 and the worldwide health crisis, the rebooting of the market in May 2020 which saw Estate Agencies open for business again, resulted in the subsequent records achieved in August 2020 with the number of property transactions at a record all time high.
This saw the highest number of sales agreed in a month since records began over where the total value sales agreed in a month totalled over £37 Billion representing an increase of 20% on the previous high.
Undersupply of UK property
Whilst a greater number of properties has come to the market this autumn, the market is still unable to catch up with the number of properties being purchased further highlighting that there are not enough properties to service the existing demand for property across all setting.
There is a clear undersupply of properties and with the appetite in the market place increasing, this is not likely to change anytime soon.
The end of Stamp Duty Incentive
Despite the end of the Stamp Duty incentive that took place on the 30th September, which many thought would see the UK property market slow down, the exact opposite has occurred.
Property prices in September were up by +0.3% from the month before resulting in a national average price rising to £338,462. However, prices in October saw an even greater increase by +1.8% from the October increase leading to a rise in the national average price for property of £344,445 representing a significant annual change of +6.5%.
Increase across all sectors
What is more impressive about the increase is that is across all sectors and all regions of the UK. The first time buyer market, second steppers and those at the top of the property ladder have also seen significant increase with the largest rise of +1.7% on the month from September coming from the top of the ladder indicating a health +9.6% annual change in property value.
Whether you are a first time buyer looking to step foot on the property ladder, or looking to move for an upgrade on your existing home or already at the top and looking for a further upgrade on your home, or a buy to let seeker for that matter, there are increase in property values across the board.
Low mortgage interest rates
Without a doubt the number of sales generated and the subsequent increase in property values have been helped by mortgage rates remaining at an all time low, along with a drive that has seen mortgage lenders keen to offer competitive rates.
Following on from the Stamp Duty incentives coming to end, the market has been further propelled forward by the feeling from many buyer that they need to capitalize on the low rates being offered, before they are increased.
Number of transactions are up
Compared to the same period in 2019, September 2021 saw the number of agreed sales transactions increase by 15.2% and with the supply of properties wholly inadequate to meet the demand, those not needing to sell a property in order to purchase are naturally in the strongest position to capitalize and get the best deals.
To conclude, the evident shortage of properties currently in circulation is resulting in property prices rising across the UK in all sectors. The market fundamentals show a stable and accessible market with low interest rates which is attractive for first time buyers to more seasoned property investors.
This is the time to buy and seeking out companies like Town Square Invest can help you navigate the market and pick the right purchase for your needs and requirement.
About Town Square Invest
Town Square Invest is a leading UK property consultancy that sources real estate investment opportunities across some of the UK’s top-performing asset classes.
Based in central London, Town Square Invest has over 50 years of experience working in the UK property market and offers individual investors and funds a tailored service to provide the best options for their individual requirements.