The average price of property coming to market this month has increased by 1.8%, £5,767, to 333,564.
The average price of property coming to market this month has increased by 1.8%, £5,767, to 333,564.
This price jump represents a new national record for the price of property coming to market.
While the level of new properties coming up for sale is at a similar level to the long-term average, demand continues to massively exceed supply, especially in northern regions.
The capital’s rate of price increase since pre-lockdown March 2020 has risen by 0.2%.
In comparison, Wales has seen growth of 13.0%, followed by North West up 11.1%, and Yorkshire & the Humber up 10.5%.
The average increase for all regions outside of the South of England is 9.7%, representing a £19,497 rise.
This market appears to have enough momentum to shrug off the imminent end of the stamp duty holidays in England and Wales.
Buyer demand has soared throughout Great Britain, up 52% in April 2021 versus April 2019, with similarly strong levels in London, up 48%.
However, it is the north that is seeing the greater imbalance between demand and supply and this is one of the main factors driving prices to new records in all regions except the capital.
This supply shortage is particularly marked for typical family homes with three bedrooms or more, with available stock for sale on agents’ books in April down by an average of 50% on the same period in 2019.
In contrast properties with two bedrooms or fewer have availability down by 24%.
Tim Bannister, director of property data at Rightmove, said: “Last year’s unexpected mini-boom is rolling on into 2021, with new price and market activity records again defying many predictions.
“Buyer affordability is increasingly stretched, but there’s obviously some elasticity left to stretch a bit more as many buyers are squeezing their way into higher price bands.
“This high demand, with both willingness and ability to pay more, has pushed the average price of property coming to market to a new all-time high of a third of a million pounds.
“In another twist, it is the regions of Britain further north that are leading the way, with some degree of catching up between average prices in London and the north.
“While the gap remains very large, with average prices in London still 2.9 times higher than those in the north, this ratio is now at its smallest since 2013.
“The pandemic has given a greater focus on the home, and 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 also narrowing some of the huge price gap with London.”
“There appears to be more headroom in buyers’ budgets among those looking to upsize. Family homes with three bedrooms or more are like gold dust in many areas of the country, especially in parts of the north.
“For example, compared to the same period in 2019 agents in the North East have 59% less available stock for sale in the ”second-stepper” sector made up predominantly of three bedroom homes, while Scotland is 65% down in the “top of the ladder” four bedroom or more sector.
“In contrast London’s available stock is down 20% and 24% respectively in these sectors, so while supply is still limited it is more closely matched to demand.
“Another important factor driving the higher demand and quicker average time to sell in the north is that more of their sellers are intending to buy and stay local, whereas many Londoners are looking to move out.
“Rightmove research among those intending to sell in the next 12 months shows that an average of 84% in the north are looking to move locally, compared to only 52% in London.
“The pandemic has changed many aspects of what people want from their homes, and the pricing pendulum is swinging away from London towards the north.”
