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House prices at record levels with lack of property choice for buyers

Supply of properties on the market and available to buyers is an all-time low at the same time house prices are at record levels.

The housing market remains buoyant with asking prices for property at an all time high at £336,073 rising 7.5% year-on-year, according to Rightmove.

Although there are early signs that the market is slowing with asking prices increasing by only 0.8% or £2,509 over the month, this is still the strongest rise during this period of the year since 2015.

Agreed sales from first time buyers and home movers in May are 17% higher than the same period in 2019 which is less than that of April where sales agreed were 45% higher.

Double digit growth in prices

More regions are recording double digit rise in asking prices and Wales has benefited from cash-rich home movers from expensive areas, up 14.6% and average prices of £228,410.

Find out what you can borrow if you are buying a new home with the monthly cost of a repayment mortgage at this link:
Home mover mortgage cost calculator with instant results when buying a property.

This table from Rightmove shows the average asking prices for UK regions and annual growth rates for June 2021.
Region Asking price Annual Growth
Wales £228,410 14.6%
South West £348,758 11.4%
Yorkshire & Humber £218,127 11.3%
North West £223,824 11.2%
East Midlands £254,306 10.2%
West Midlands £255,419 9.5%
East of England £390,652 9.5%
South East £444,341 8.7%
Scotland £171,850 8.0%
North East £164,937 7.3%
London £650,294 1.8%
Other regions with a double digit rise are the South East of England with annual growth in asking prices of 11.4%, Yorkshire & Humber up 11.3%, the North West higher by 11.2% and East Midlands up 10.2%.

In contrast to the rest of the country, London has not seen the same growth in asking prices rising by 1.8% over the year and average property values of £650,294.

For older homeowners in these regions the higher prices allow the equity release buyer to drawdown cash over time using a lifetime mortgage which can improve your quality of life.

For the second stepper sector asking prices are higher by 8.7% year-on-year with property values of £305,263 and for first time buyers prices are up by 5.2% and cost to buy a home averages £205,540.

Strong rise in top-of-the-ladder sector

Demand is higher in the top-of-the-ladder sector that includes detached properties with four bedrooms or more as they do not suffer from the same affordability issues as the rest of the market.

Asking prices have increased 12.3% or £67,394 compared to 7.5% or £23,448 for the country since March 2020 even though the stamp duty holiday ends at the end of June.

The average asking price for top-of-the-ladder homes is £616,475 and the number of sales valued at over £500,000 in May are 49% higher than the same period a year ago.

For remortgage buyers with equity gains, rather than moving you can take a further mortgage advance for home improvements to create more space such an extension.

These higher house prices can benefit older homeowners allowing the equity release buyer to access cash using a lifetime mortgage and interest rates as low as 3.0% based on provider loan to values.

With the change in lifestyle many wealthier buyers have the opportunity to buy a second home such as in the South West where 28% of properties are selling within a week, pushing up asking prices.

What are your next steps?

Talk to our London City Mortgage brokers about remortgaging your current home for the best mortgage deal. Learn more by using the property value tracker chart and equity release calculator.

Start your free remortgage quote and we can find competitive mortgages and low interest rates for your property at this link:
Free mortgage quote with the low remortgage rates for your home.

If you are releasing equity from your property such as to buy a more expensive home, we can recommend lifetime mortgages so begin your equity release quote for the latest provider offers.

Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%
1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%

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    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.


    Equity Release - Equity Released from your home will be secured against it. Mortgages – Your home may be repossessed if you do not keep up repayments on your mortgage or other loans secured against it. Think carefully before securing other debts against your home. The information contained in this website is subject to the UK regulatory regime and is therefore intended for consumers based in the UK.


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