At Holmes Estate Agents, we want to ensure you make an informed decision when it comes to the property market. We know the local market well, and we stay in touch with national figures. When Rightmove releases information about the UK market, we pay attention, and we make sure you are fully informed.
Compared to last year, there is close to 40% more sales going through the buying and selling process. When you take on board there are restrictions relating to social distancing, this is a remarkable figure.
It is no surprise to learn there is a congestion of sales taking place right now.
There is growing demand for larger homes
Rightmove has also provided clarification on the increased demand for lager homes. Four-bedroom detached homes are in greater demand than they were this time last year. Agreed sales more than doubled in August 2020 compared to August 2019, rising by 104%. Three or four-bedroom properties (excluding four-bedroom detached properties) rose by 55%.
Even the sales of two-bedrooms or fewer rose by 36%. Therefore, there was a strong rise, just not as strong as the increase for larger homes.
Tim Bannister, Rightmove’s Director of Property Data said; “Increased competition for second-stepper homes has pushed prices to a record this month for those looking to take the next step up the ladder. Needing more space has always been the most popular reason for moving house, but now there’s a new urgency for extra space to be able to work from home, which means that there are different sets of buyers competing for the same type of property.”
Tim continued by saying; “At the start of the year a fourth bedroom was very much a luxury for buyers trading up, but it’s now emerging as a must-have for those who are able to take that step. With overall asking prices just a few hundred pounds shy of July’s record, and buyer demand at an all-time high, those currently looking for their next home are likely to find that only offers close to the asking price will be considered, especially for larger homes.”
Gardens remain in high demand
The information provided by Rightmove is similar to information shared by RICS. In their most recent publication, RICS state:
• National house price growth indicator hits a four-year high
• Enquiries, sales and new instructions all continue to rise
• 83% of respondents foresee demand increasing for homes with gardens / outside space over the next two years while 79% predict rising demand for those properties near green space
Simon Rubinsohn is RICS chief economist, and he said; “The latest RICS survey provides firm evidence of a strong uplift in activity in the housing market which should help support the wider economy gain traction over the coming months. More of a concern is the pick-up in prices which could intensify issues around affordability in some parts of the country. Disaggregated data shows demand generally to run ahead of supply.”
Simon continued by saying; “Meanwhile the results provide a further pointer to more substantive changes taking place in household behaviour in the wake of the pandemic. Increased demand for properties with garden and near green spaces has if anything increased since we tested the water in May.”
We have considerable experience and expertise in the South West of London. We are ideally placed to help vendors, tenants and landlords during this challenging time. If you have any questions regarding the South West London property market, please get in touch with Holmes Estate Agents today.