Call for your free quote 0800 955 0058

Record high asking prices are at risk from spread of Coronavirus

Asking prices in the UK surge to a record high of £312,625 rising 3.5% over the year and now threatened by the spread of Coronavirus.

Sellers have increased asking prices to a record high up 3.5% or £10,571 year-on-year with average values of £312,625 according to Rightmove but market activity is at risk from the spread of Coronavirus.

First time buyers asking prices are higher by 3.1% annually with average values of £195,463 and for second steppers prices are up 2.7% with values of £280,818.

The lack of new supply of suitable properties to the market at an affordable price means home movers may decide to stay in their current home and save for a bigger deposit.

The property market is recovering from uncertainty caused by Brexit only to be faced with the Covid-19 Coronavirus which is expected to cause volatility over the spring and summer.

Strong rise for London asking prices

London has seen a surge in sales with property asking prices up 5.1% over the year, the highest annual rate since 2016 due to strong buyer demand and lack of supply.

Asking prices average £638,826 for Greater London rising £30,999 in the last year and are 1.6% or £9,773 higher over the month.

This table from Rightmove shows the average asking house prices and annual change for London boroughs to March 2020.
Borough House prices Annual change
Lambeth £656.625 8.6%
Kensington and Chelsea £1,611,065 6.8%
Sutton £479,220 6.3%
Westminster £1,497,296 5.8%
Waltham Forest £501,849 5.6%
Tower Hamlets £583,148 5.2%
Camden £1,029,110 4.5%
Islington £777,917 4.2%
Lewisham £475,625 4.0%
Newham £419,269 4.0%
Inner London properties have seen asking prices up 7.4% year-on-year with strong performance in Kensington and Chelsea higher by 6.8% and Westminster up 5.8%.

Outer London is buoyant with Sutton up 6.3% or £28,401 annually with average asking prices of £479,220 and Waltham Forest higher by 5.6% or £26,613 and prices at £501,849.

Miles Shipside, Rightmove director said, new supply to the market has failed to keep anything close to the pace of increased demand in this recovery.

With fewer suitable homes on the market as the equity release buyer can avoid downsizing with a lifetime mortgage to access cash from their home to consolidate debt, home and garden improvements.

Sales agreed rise 18% annually

Across the country there has been a surge in sales agreed rising 17.8% year-on-year and the highest level since May 2016 in contrast supply of new properties is up only 1.2%.

This is pushing average asking prices higher over the year rising 1.0% in the month to £312,625 with 110,000 properties on the market selling at record high values.

For remortgage buyers higher prices allows them to release capital when they next switch to a preferential rate and use this for home improvements or give to their children to buy their first home.

The higher asking prices for homes means buy-to-let landlords need a larger deposit to reduce the mortgage or higher rental income to cover the lenders interest payments.

Properties are selling in 67 days which is 4 days faster than a year ago and in London this is 15 days faster reducing from almost 82 days last year.

Despite the limited stock on the market Rightmove recorded 26% more instructions in January compared to this month last year and this is expected to continue.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

For equity release buyers our London City Mortgage brokers can recommend lifetime mortgages allowing you to receive cash from your property to help maintain your standard of living as costs rise.

Learn more by using the mortgage monthly cost calculators, equity release calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.


Mortgage Best Buys

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

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

The latest mortgage news


16 Aug 2021

Winchester is the least affordable UK city to live and work

Winchester replaces Oxford as the least affordable city to live and work with the highest average property prices now 14 times annual earnings.

06 Aug 2021

Demand for homes falls 9pc as stamp duty holiday ends

As the initial stamp duty holiday ended in July the demand for property reduced by 9% but remains significantly up on normal market levels.

29 Jul 2021

Mortgage deals under 1pc increase with competition from lenders

The number of mortgage deals offering 1% interest or less has increased as lenders compete for new and existing borrowers.

21 Jul 2021

Savings during lockdown release you from your mortgage early

UK savings reached £200bn during lockdown and overpayments could reduce interest costs and clear your mortgage years earlier.

Call for your free quote 0800 955 0058

  • IMPORTANT

    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.

  • WARNING

    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.

    CONTACT

    Address:
    9th Floor, 30 Crown Place
    London, EC2A 4EB

    Phone:
    0800 955 0058

    Email:
    info@londoncitymortgages.co.uk

    London City Mortgages Limited is a registered company in England & Wales under company number 09278987. London City Mortgages Limited is an Appointed Representative (FCA no. 655965) of Blackstone Moregate Limited (FCA no. 459051) which is authorised and regulated by the Financial Conduct Authority. LCM and LCM Equity Release are trading names of London City Mortgages Limited.

    2021 © London City Mortgages.
    Website designed & developed by Spyre Media