Property sales prices jump 9.3% to another new record as Rightmove revises 2022 forecasts upwards amid housing shortages
- Average sales prices increased 9.3% to £369,968 in July, down from 9.7% in June
- Prices have now risen to a record six months in a row.
- Rightmove revised its 2022 forecast upwards, expecting 7% growth instead of 5%
- That still marks a slowdown from the current level of house price inflation.
Property sales prices rose to another record high this month, according to Rightmove, as buyer demand continues to outpace the supply of homes listed.
The average sale price of a UK property rose 9.3 per cent to £369,968 in the year to July, marking the sixth consecutive month that a record has been posted.
The pace of growth slowed slightly from June’s 9.7 percent growth, but the property website has revised its forecasts for the year up as it believes supply will continue to struggle to meet strong demand.
Rightmove’s map shows how different regional markets are seeing sales price changes
It now predicts that asking prices will rise 7 percent in 2022, up from a previous forecast of 5 percent.
That contrasts with recent predictions by Capital Economics, which said Britain’s house prices could fall by as much as 10 percent ‘soon’ as rising interest rates send property markets tumbling across the board. the world.
Rightmove said the number of new sellers entering the market is up 13 percent compared to last year, but homes available to buy are still 40 percent below June 2019 levels. This is expected to keep pushing prices up.
Demand from prospective buyers is also a quarter higher than it was in June 2019, according to the real estate portal, though it is coming off the frenzied market boil of last year, falling 7 percent.
Rightmove’s director of property science, Tim Bannister, said: “With such an imbalance between supply and demand remaining, prices look propped up and therefore we would only expect smaller typical seasonal dips month to month, instead of more significant price drops in the second half of the year.
“This has led us to revise our year-end annual price growth prediction from 5% to 7%, although this would still mark a slowdown from the 9.3% seen this month.”
Rightmove predicts that house prices will rise 7% this year, up from previous forecasts of 5%.
Prices have now risen to a record six months in a row, Rightmove said.
The data echoes recent findings from RICS, which said lack of housing stocks continues to drive house price gains despite falling demand.
However, real estate agents have also noted a drop in buyer interest, which is translating into a drop in sales.
South West and Yorkshire & Humber top tables
Looking at regional trends, Rightmove said the South West and Yorkshire & Humber experienced the fastest annual growth rates, with average sales price increases of 12.2% and 12.1%, respectively.
However, on a monthly basis, prices fell 0.6 percent in the South West, while in Yorkshire they continued to rise even month-on-month, adding another 1 percent.
Ben Hudson, managing director of estate agents Hudson Moody in York, said they were not surprised by the strong growth in York, where prices rose 11.6 percent.
“The shift from Covid to being able to work from home has meant a steady stream of shoppers from London moving to York because of its connectivity,” he said.
“Yorkshire is still significantly cheaper than the South East and this is driving prices up.”
London experienced the slowest annual price growth of 7.4 percent, with prices accelerating 1.6 percent from the previous month.