As the UK’s leading property website, Rightmove is in a position to reveal how the property market is performing and the emerging trends for buyers. It does this in its House Price Index report, which is published monthly and compiles price performance and housing stock figures, as well as national and regional analysis.
Below, we have summarised the findings of the most recent report, including what it means for first-time buyers and investors alike.
Key findings from the report:
3% monthly increase in the average price of property on the market, which represents a 7.6% increase year-on-year.
- First-time buyer asking prices hit an all time high of £214.176.
- High demand and low supply has caused a surge of activity in the property market – the number of buyer enquiries is up 15% year-on-year and the number of homes for sale per estate agency branch hit a record low of 12.
- There is indication that housing supply will improve, with the number of home valuation requests in the first week of 2022 up 44% on the previous year.
Tim Bannister, Rightmove’s Director of Property Data comments: “People who have made it their New Year’s resolution to move are finding asking prices are within just one per cent of the record from October last year, and are at the highest level ever recorded for first-time buyer type homes. All of the signs suggest that prices are likely to continue to rise until more choice is available. Three regions are in most urgent need of new supply, the East Midlands, South West and South East of England, as they are now at unsustainable rates of annual price growth above 10%.
“It’s clear that the trends which defined the market in 2021 have carried over into this year. That being said, we are seeing early signs of a better balanced market in 2022. The number of requests from would-be sellers to agents to value their home has continued to increase from the end of last year and was at one of its highest points ever on the first working day of this year. While this potential new supply will take a little while to appear on the market, it’s an encouraging sign of more choice for buyers in the coming months.”
A comment from our Managing Director
Michael El-Kassir, Managing Director of GRE Assets, said: “The latest House Price Index report from Rightmove is very revealing about the current property market landscape. It continues to show that buyer demand is stronger than ever and there has been a significant burst of activity from the start of the year, due to the lack of supply. This is something that as a company we have identified as a leading issue in the market, particularly first-time buyers who are faced with limited choice and increased property prices.
“While an increase in property prices can be a positive indicator of the market, particularly for investors, the lack of supply presents an opportunity. Rightmove has identified that there may be early signs of improvement, with valuation requests up year-on-year, but there is still some way to go. High-quality new build properties at the right price could be the answer, as they can be designed with buyers in mind and ensure they’ll be equipped for modern living for years to come.”
GRE Assets is a property investment company with major residential schemes in the UK and Spain.