07 Jul Why do asking prices keep rising?
It’s been 18 months of economic uncertainty in the UK and so it might seem strange that house prices are continuing to rise. In fact, asking prices are at a record high in all regions of Great Britain for the third month in a row.
Are you looking to move home this year? Why not browse our properties for sale in Virginia Water and the surrounding areas? If you’re looking at moving to the area, visit our award-winning website or call us on 01344 843000 and email us.
So, what are the main contributing factor for this continuing rise in house prices?
The demand for homes is heavily outweighing the homes on the market. It’s a simple supply and demand issue. While vendors are pricing their homes competitively, they are often receiving multiple offers; with homes selling quickly and a record number being sold at or above the asking price.
The busiest segment of the market is for big detached properties with large outdoor spaces, this is a direct result of people working more remotely and commuting less and so proximity to major cities is less of a priority. These properties are seeing the largest rise.
Following on from the remote working factor, many people have decided to escape expensive city areas and commuter belts and move to the countryside and coast. This is pushing up prices in towns and villages in the South West and Wales, which have seen the highest demand.
In the South West of England homes are selling at record speed with 28% of properties selling within a week of being listed according to our friends at Rightmove.
Stamp Duty and Interest Rates
These two factors have a heavy influence on the state of the property market. In May 2020 the Stamp Duty Holiday was announced in order to stimulate the property sector and boost the UK economy on its road to recovery. The temporary reduction of Stamp Duty rates enabled buyers to save up to £15,000, and with the Holiday being phased out between now and October, people are racing to get over the line.
We are also at the bottom end of a low interest rate cycle and are unlikely to ever see them this low again and this is helping people to move into bigger or more expensive properties. The launch of the mortgage guarantee scheme which is backed by the Government also means that more people have access to high loan to value mortgages.
Thinking of moving?
If you are tempted to get in on this buoyant market, now is a great time to attract a large number of potential buyers and get the price you want for your home; especially as many buyers will be keen to move before the end of the summer.
As mentioned before, the most competitive segment of the market is for big detached properties over £500,000; if this is your next move, we recommend registering for property alerts with the local estate agents in the area in which you wish to move.
In summary, the market is crying out for new properties, so however embryonic your plan to move is, it’s definitely worth getting your property appraised, you might be surprised.
Get in Touch
If you are thinking of moving to the area, make sure you take a look at our amazing catalogue of properties for sale in Virginia Water and the surrounding areas.
If you’d like to speak to someone about properties to let in Virginia Water, a member of our expert team would be happy to help. You can call us on 01344 843000 or email us. You can also follow us on Facebook, Twitter, Instagram and LinkedIn.