While the increase in the price of new property being placed on to the property market only rose by 0.4% in April of 2018, the increase was enough to create a record national average. In figures provided by Rightmove, the new national average stands at £305,732 and this is 0.3%, or £789, than the previous high of £304,943 and this was set in July of 2017.
There is not uniformity across the country
As you would expect, various parts of the country fared differently and the strongest increase in the annual rate of price increases came in the North West of England with an increase of 4.3%. Of the 11 regions, six experienced a new high, with these regions being listed below:
• North West saw an annual rate of price increase of 4.3%
• East Midlands saw an annual rate of price increase of 4.2%
• Yorkshire & The Humber saw an annual rate of price increase of 2.7%
• South West saw an annual rate of price increase of 2.6%
• Wales saw an annual rate of price increase of 2.4%
• East England saw an annual rate of price increase of 1.2%
Rightmove also announced that they experienced a record number of visitors on their website, which is clearly an indicator that people hold an interest in property and the market in general. However, there are suggestions that buyers are becoming more sensitive with respect to prices.
This can be seen with the fact that the actual selling price being achieved across the country comes in at 96.7% of the final asking price. Taking on board the new asking price level of £305,732 across the country, this can lead to a difference of more than £10,000.
Some agents set too high an asking price
This would suggest that many sellers, likely being led by their agents, are asking for a price that is too high. This is an issue that impacts the property market, but there is also an opportunity for savvy developers to take advantage of this. High-end properties are still in demand and delivering a quality property that offers what people are looking for can justify higher costs.
It is not the fact that buyers don’t want to spend money, but they do want to find value for money. Some sellers will find that lowering their price will help them achieve sales, but other sellers will find that justifying the cost by offering a better standard of property is likely to make a difference in demand.
There is no denying that the property market is experiencing difficulties and there is a growing level of awareness about agents setting too high an asking price. With some leading names referring to estate agents as irresponsible, prospective buyers are looking for more in the property market. This represents an opportunity to over-deliver and be an affordable yet suitable option in contrast to properties that are prices too highly.