UK housing market "has hit the ground"

Monday, Feb 15 2016

Britain's housing market has "hit the ground running" in 2016 said Rightmove, a property listings website, in its house price index for January. The average house price reached £299,287 after rising 2.9% over the month. Rightmove also said there was a 5% increase in the number of properties coming onto the market during January, and a 10% rise in the supply of typical first-time buyer homes, which have two bedrooms or fewer.

House prices rose sharply in recent years for a number of reasons. In some areas of the country, particularly London and the south east of England, there is a serious shortage of housing supply. Other areas were recovering from a low base after the financial crash, with property prices only reaching their pre-crisis peaks again in 2014. And a healing domestic economy, high employment and low interest rates have fueled demand for home purchases.

"The new year's market has hit the ground running in many locations, continuing last year's momentum and resulting in the price of property coming to the market hitting a new high," said Miles Shipside, director of Rightmove. "Many agents reported high numbers of sales in November and December and properties selling more quickly, so it's encouraging to see signs of replenishment of property, especially in the first-time buyer sector.

"However, in spite of the apparent veneer of market buoyancy, those thinking of putting their property up for sale need to avoid being too optimistic with their initial asking price, as most buyers are still understandably being very selective about their future home."

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