UK house prices: housing market surge continues as property prices hit new record high

 
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House prices in the UK have hit a new record high and are rising at the fastest rate in four years as the housing market continues to boom.

The average asking price for a home coming to market hit £324,000 this month - 5.5 per cent higher than a year ago — as activity levels spiked.

The average time it takes to sell a home is the fastest ever at just 50 days, according to Rightmove, which says estate agents now have more properties marked as sold than available.

The number of sales agreed rose 70 per cent year on year, with the number of active buyers 66 per cent higher than a year ago.

The property website said activity is now starting to wane slightly, but it forecast prices to rise still further before the end of the year, with the annual increase hitting seven per cent in December.

“Previous records are tumbling in this extraordinary market, and there are still some legs left in the upwards march of property prices. We predict that the annual rate of growth will peak by December at around seven per cent higher than a year ago,” said Rightmove’s Tim Bannister.

“Many buyers seem willing to pay record prices for properties that fit their changed post-lockdown needs, though agents are commenting that some owners’ price expectations are now getting too optimistic, and not all properties fit the must-have template that buyers are now seeking.”

The regions with the biggest annual price increase were Scotland, where prices rose 8.7 per cent to £169,000; the East Midlands, where prices were up 7.7 per cent to £246,000; and Yorkshire and Humber, where prices rose 7.4 per cent to £210,000.

House prices in London

London asking prices rose least of all regions in the country, up 2.6 per cent to £634,400 while the second lowest price rises were in the South-East, the second most expensive region, where the average house price is £422,500.

The average time to sell a property in the capital plunged to 48 days, with most boroughs seeing asking prices rise, despite reports of an exodus to the suburbs and countryside.

The biggest rise was in Lewisham, where an annual change of 8.2 per cent pushed prices to just under £500,000. In Haringey, a house price rise of 7.4 per cent means asking prices are now £657,000.

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