Home owners in London are taking longer to sell than anywhere else in the UK, according to the latest Rightmove House Index.
It means those who are in two minds about selling right now would be better off waiting, says new research which forecasts a boost in house prices over the next decade.
But back to slow selling in the capital – owners there are waiting almost three months (58 days) to find a buyer. In Scotland it’s taking less than one month (24 days) and in the South West a month (33 days). In London it’s 10 days slower than the same period last year.
Average UK asking price up 5.8%
The average property price increase over 12 months in London is just 0.8%, bringing the cost to £638,285. In the UK as a whole the price rise is 5.8%, with the typical seller asking for £338,462.
Demand too is up – almost double the pre-pandemic figure. But more properties are coming to market now that summer is passed and the quieter season of autumn in settling in. This means prices may start to stabilise.
Sam Mitchell, of online estate agent Strike said: “The property market has proved its resilience yet again, with transactions climbing 32% in August.
“We’re witnessing another flurry of activity as buyers and sellers rush to complete before the final stamp duty savings are removed this month, with properties valued under £250,000 still benefiting from the relief. But the strength of the UK housing market goes well beyond fluctuations around changing tax policies, and we see little sign of it slowing down in the months to come despite the stamp duty holiday finally ending.”
Meanwhile, according to new research by Compare the Market, hold on to your home at the moment. Sell in a decade and make around one third of its current value, according to the study.
Using historic ONS data and future predictions, analysts say a property currently valued at £248,496 will probably be worth £286,107 in five years, by 2031 it’s market price will be around £323,718.
But, for prospective landlords, there is also the issue of rental yields. At the moment the north west has some of the highest. But the north east, Yorkshire and the Midlands aren’t too far behind in this regard either.
And, in terms of capital increases they are looking good too. Property prices in Yorkshire are expected to rise by 28.6% over the next decade. In the north east, they are expected to increase by 28.4%. The biggest rises, according to analysts, are expected to be in both the East and West Midlands property market, with an increase in property prices of 29% by 2031.
Age of first-time buyers increase
Not surprisingly, this ever-increasing rise in property prices will be matched with a corresponding rise in the age of first-time buyers, say the study. At the moment the average age across the UK is 33. In London it’s 35. That’s expected to go up to 34 and 37 respectively in 10 years’ time.
Compare those figures to 2006 when the average age in the UK for first-time buyers was 30 and 32 in the Capital.