Property Asking Prices at record high according to Rightmove

It seems that turning the housing market off and on again, then adding in a Stamp Duty holiday has done extraordinary things for the property market.

There was already pent-up demand before the pandemic took hold, but now there seems to have been an explosion of activity.

This was evidenced today by the publication of Rightmove’s latest analysis on asking prices. This showed that the average asking price is now at a record high, an increase of 2.4% on the previous record in March, and up 3.7% annually.

They also showed a 75% increase in buyer demand from this time last year which they described as a “mini-boom”.

This is all great news and shows that despite some of the prevailing doom and gloom around, buyers remain committed the housing market and want to make sure that they take the opportunity the stamp duty window offers as well as making sure they get into a property they could potentially go through another lockdown in.

What is also pleasing is the fact that lenders are noticing this and tentatively coming back to the higher Loan-to-Value markets once more. Nationwide, Accord and Coventry are once again coming back into 90% LTV borrowing and this should help to give other lenders the push they need to join the party.

Although these product rates are now at much higher prices than they were previously, they still represent affordable value in a generally low-interest-rate environment, with rates available from 2.24% (3.40% APRC).

There is still an issue from some lenders around capacity, with some of the bigger lenders experiencing backlogs and delays so it is important to manage expectations accordingly. That said, there are still some lenders that through their relationships with good brokers, (like Coreco of course), are getting from application to offer within a week.

It’s all about making sure that all documentation is packaged correctly upfront.

In terms of mortgage rates, for standard residential mortgages, borrowers can obtain 2-year fixes at 1.14%, (4.40% APRC) and 5-year fixes from 1.39%, (3.10% APRC) whilst variable tracker rates are around from 1.34%, (3.30% APRC).

Those looking at Buy-To-Let can now obtain products from 1.19%, (4.55% APRC) for 2-year fixed or 5-year fixes are available from 1.62% (3.77% APRC).

To take advantage of these low rates and the stamp duty holiday, speak to one of our professional, friendly brokers on 020 7220 5110 or send a message via our contact form.