(Alliance News) - UK house prices climbed again in March, property listing site Rightmove said on Monday, as buyer demand reached record levels.
The average price of new property coming to the market was 0.8% higher monthly in March at GBP321,064. Annually it was up 2.7%.
"With demand being driven by the side effects of the lockdowns and the additional spur of government incentives, we anticipate further price rises during the traditional spring selling season," Rightmove said.
The housing market found support in UK Chancellor of the Exchequer Rishi Sunak's budget statement earlier in March. Sunak extended the stamp duty holiday on UK house purchases until the end of June. He also outlined a mortgage guarantee scheme to help buyers with small deposits get on the property ladder.
Rightmove Director of Property Data Tim Bannister commented: "Concerns of a cliff edge for the housing market at the end of March have dissipated, partly due to the tax deadline extensions in all of the UK bar Scotland, but also because the already high level of buyer demand caused by the lockdowns has continued to surge since the start of the year. This demand will be further boosted from April by the new government guarantees enabling lenders to bring back 5% deposit mortgages."
Rightmove added that the number of potential buyers enquiring about available property jumped 34% annually, reaching record levels.
"Whilst it is unfortunately not the perfect time to buy for some people who have been adversely affected by the pandemic, the record buyer demand measured by Rightmove indicates that now is the right time for many. Record low interest rates and the new focus on what your home needs to offer after several lockdowns have led us to the greatest excess of demand over supply in the last ten years," Bannister added.
"So many sales have been agreed in recent months that we now face a serious shortage of homes available for sale. There are lots of reasons why many home-owners have hesitated to come to market during the first two months of the year, but these do now seem to be dissipating."
By Eric Cunha; ericcunha@alliancenews.com
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