Back in August 2016, we reported that the average cost of a UK property increased by 8.4% year-on-year, and it appears that the property market shows no signs of stagnating, with figures published recently by Rightmove showing that the average asking price for UK homes has broken the £300,000 barrier for the first time.
In January, online estate agent Rightmove published research showing that property prices increased by 0.4% in January, and that the average asking price for UK homes now stands at £300,245, the highest ever recorded, and the third highest price rise in the December and January period since 2015.
Despite initial fears by estate agents and property experts that Brexit could seriously hurt the property market in late 2016 and into 2017, Rightmove revealed that property prices are continuing to rise as a result of growing demand; since Boxing Day 2016, there has been a 5% year-on-year increase in demand for UK properties.
Speaking about the results, Rightmove’s Director and Housing Market Analyst, Miles Shipside, said that the 3.2% year-on-year price rise, along with the 0.4% monthly increase, indicates that the property market is continuing to experience increasing momentum following the positive figures posted in the autumn. He continued to say that traffic to the Rightmove website is still up by 5% year-on-year, even when compared to a period when landlords were rushing to purchase buy-to-let property before the new stamp duty tax changes that came into force last April.
Rightmove also indicated in their research that certain regions of the UK are experiencing higher levels of property demand than others, with property investors expected to look towards northern counties in order to achieve the best rental yields. Rightmove has said that it expects 2017 to be the year when more property investors gravitate northwards in order to take advantage of the cheaper property prices and greater rental yields of up to 8% in cities such as Leeds, Liverpool and Manchester.
12 months ago, the property market was swamped with an increasing number of landlords looking to purchase additional properties for their buy-to-let portfolios before the changes to stamp duty land tax came into effect in April. This year, Rightmove has said that there is an increasing number of smaller properties on the market, which could benefit first-time buyers. Rightmove added that first-time buyers have a much wider variety of properties to choose from compared to a year ago, and there isn’t such a demand to complete the sale as quickly as no new regulations to stamp duty are expected in the near future; first-time buyers should use this opportunity to negotiate better prices and influence property prices down in their favour.
Are you looking to purchase your dream home in Cardiff, or perhaps looking to get on the property ladder for the first time? Whatever your circumstances and property needs, the sales team at CPS Homes estate agents are here to help. Give us a call today on 02920 454555, email email@example.com or pop into our Roath branch based on Albany Road, Cardiff.