The report released by the property search portal Rightmove suggests that entry level properties that would be suitable for First Time Buyers have already seen an uplift of 1.1% in value since November. Although this had been predicted by many in the property industry, only now it is backed by evidence.
The tight supply of suitable properties for sale which is at an average overall number of 42 properties on sale per estate agency branch counter-balances to a degree the current market’s negative price factors of stretched buyer affordability and uncertain political outlook.
“While potential buyers are still busy looking, they are looking for good value and the right property. Price rises have had a good run and the return of the days of optimistic pricing is consequently some years away and contingent upon earnings increasing and interest rates remaining low. Sellers should get good local advice to ensure that their property price and presentation are suitable for their local market conditions,” commented Miles Shipside, Director and Housing Market Analyst at Rightmove.
Important information coming from the report is that even though many regions, such as Yorks and Humber, the North West, and the South West, reported monthly increases in asking prices, London saw a 1.4% month on month drop and a 3.5% year on year decrease.
“Whilst month on month and year on year growth in many areas is subdued, that’s a far more positive situation than many had feared, which was that we’d start the new year with a ‘bearish’ market that would see growth overall slide into reverse gear,” commented on the collected data Andy Frankish, Director of Mortgage Advice Bureau.
The advice given for future sellers is that they price sensibly. Although properties in many areas keep selling, there still is a limit to what buyers will pay and can afford to borrow.