Record prices across all property sectors for first time since 2007

In what Rightmove has referred to as a ‘full house’, all sectors of and regions of the UK residential property market achieved record house prices in the same month in September.

This is the first time this universal achievement of record prices has occurred since March 2007.

The price of a property coming onto the market rose by 1.8%, equating to a £5,983 uplift, the biggest rise at this time of year since October 2015.

The number of sales being agreed was up 15.2% in September compared with 2019’s ‘normal market’ comparison.

The number of new properties coming to the market ticked up compared to the summer, but Rightmove said this was not enough to satisfy strong autumn demand from buyers.

The latest weekly snapshot showed that the number of new sellers coming to market was still marginally down on the same period in 2019, but only by 3.2%, as opposed to 9.3% for the period as a whole.

Rightmove measured 88,694 asking prices this month nationally, making for approximately 95% of the UK market.

The properties were put on sale by estate agents from 12 September to 9 October 2021 and advertised on Rightmove.

Tim Bannister, director of property data at Rightmove, said: “Competition for property for sale remains hot this autumn, with average prices jumping by almost £6,000 in the month.

“Although more properties are coming to market, the level is still not enough to replenish the stock that’s being snapped up.

“Consequently, new price records have been set across the board, with every region of Great Britain and all of the three market sectors of first-time buyer, second-stepper and top of the ladder hitting all-time highs.

“This ‘full house’ is an extremely rare event, happening for the first time since March 2007.

“The stock shortages started after the first lockdown, and they look set to continue with the underlying housing market fundamentals remaining strong, and an additional incentive to buy and fix your mortgage interest rate before a widely expected rate rise.

“Mortgage interest rates are lower than they have ever been before and lenders are keen to lend in a competitive market, with employment and wage growth also robust.

“The number of sales agreed continue to be strong despite the end of the stamp duty incentives.

“2021 has been the year of the power buyer, with those in the most powerful position to proceed quickly and with most certainty ruling the roost over other buyers who have to sell but have yet to come to market.

“One agent’s analysis that 87% of their sales agreed were snapped up by buyers who were already in a position to proceed is fairly typical of reports from many agents.

“Buyers being able to prove they are mortgage-ready or have cash in the bank helps them get up the pecking order.

“Whilst available stock for sale is still close to record lows, there are signs that this has stopped falling and is stabilising this month, so fresh new choice is slowly growing.

“As we approach the end of the year, many prospective buyers may be distracted by a more normal family Christmas than in 2020, giving more determined buyers who have already sold their own property an opportunity to act fast and buy with less competition.”

Written by: Houseladder