This increase was enough to reach a new record high, but is only £15 higher than the previous record set in July – a sign that prices are now stabilising. There’s also the hottest ever competition to buy, with buyer demand per property for sale more than double pre-pandemic levels.
Additionally, there’s an increasing rise of the “power buyer” – which is defined as those who have already sold their own home, have cash in the bank, or are first time buyers with a mortgage agreed. These buyers are in a more powerful position and have the ability to muscle out those who still need to sell their current home.
Commenting on the news, Rightmove’s director of property data Tim Bannister, said: “While the holiday-starved took their break over summer, the high ratio of buyer demand to properties for sale means that the property market remains stock-starved despite the summer lull lessening overall activity.
“Competition among potential buyers to secure their next home is now more than double what it was this time in 2019. To be in pole position in the race for the best property you need to have greater buying power than the rest of the field.
“That traditionally would mean deeper pockets to outbid other buyers, but in the most competitive market ever, today’s ‘power buyers’ also need to have already found a buyer for their own property, or to have no need to sell at all.
“Agents report that buyers who have yet to sell are being out-muscled by buyers who have already sold subject to contract. Proof that you are mortgage-ready or can splash the cash without needing a mortgage will also help you get the pick of the housing crop.”
Although buyer demand remains very strong, buyer affordability is becoming increasingly stretched, driven by disappearing stamp duty incentives and the summer holiday mini-lull, alongside sluggish price growth in London.
And while five areas of Britain – the south-west, Wales, the east-Midlands, the east of England and the south-east – all had an annual price growth in excess of eight percent, greater London saw a better supply of homes for sale than the rest of the country. This has contributed to a rise of just 0.8%.
The researchers have said that this sets up a “better-balanced” autumn moving season, with there being some early signs of an increased number of properties coming to the market – with the number of new listings going up by 14% in the first two weeks of September when compared to the last two weeks of August.
Bannister added: “But autumn is traditionally a busy period, as those owners who have hesitated thus far during the year see the few months before Christmas as an opportunity to belatedly get their moving plans underway.
“The frenetic pace of this year’s market may also have put some potential movers off, but there are signs of a return to some normality. It’s still a stronger sellers’ market in most of the country, so those looking to purchase need to do all in their power (to) maximise their appeal to sellers, who will often have several offers, and will usually choose the one that gives them the best chance of a quick sale.”
National estate agent Hunters’ chief executive Glynis Frew, added: “While the autumn may be slightly quieter, the desire to change our lifestyles due to the pandemic and new working trends isn’t likely to fade, so we anticipate activity levels remaining higher than usual. Large deposits and no chain have always been preferable, but this has been amplified in the current market.
“With so much competition, sellers can easily discount those who aren’t in the most powerful position to proceed on a purchase. It is imperative that buyers have their finances lined up before making an offer.”
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