Why do house prices keep rising?

It's the biggest jump in over 20 years

The first quarter of 2022 has seen large numbers of homebuyers continuing to join the market at a frantic rate. Below, we look at what’s behind this spike and whether it will continue into the rest of the year.

It’s not unusual for spring to be a great time to sell a home, but what’s happening currently is unprecedented. February saw the biggest jump in house prices in over 20 years as the average price of a home in Britain rose by £7,785, hitting a record high of £348,804.

What’s behind the price growth?

Many people are still considering how and where they want to live after Covid. During the pandemic, asking prices rose by nearly £40,000 in two years – this was a considerable leap compared to just over £9,000 in the previous two years. However, this is no longer the main driver. The recent price growth is a result of a large number of sellers looking to upgrade their first home. This growing demand and a shortage of available properties are making for a very competitive market and many movers are looking to put their properties up for sale so they can move quickly and have the best chance of securing their next home.

Will prices keep rising?

For buyers, there’s good news, there are early signs of prices easing and there are considerably more properties being listed compared to a year ago. However, sellers can be confident that this process is happening at a manageable pace and prices are expected to remain steady during this quarter. 

What does this mean if I’m looking to move home?

A continued shortage of homes to choose from is also having a huge effect and finding a great place can be a challenge. The most efficient buyers are having success by using tools such as instant property alerts and daily listings received by email. They're also working to put themselves into a position to act immediately once they find a place they like.

Now is the perfect time to sell

According to the property experts, April is the perfect time for movers to start their property journey and the best time of the year to put a property on the market. Competition between buyers is generally at its strongest at this time, providing an opportunity for movers to sell their home promptly at a favourable price.

Has your home increased in value?

General source: www.rightmove.co.uk/news/articles/property-news/why-house-prices-keep-rising-0222/