Nearly 65,000 properties were marketed between the 8th December and the 11th January, most after the election. This being the largest monthly rise recorded at this time of year, it would appear that many of these new sellers are feeling a surge of optimism. Buyers are also optimistic, with a jump in demand since the election. In the period from 13th December to 15th January, immediately after the election, enquiries to estate agents were up by 15% compared to the same period a year ago. This then led to a 7.4% increase in the number of sales agreed over the same period

• 2.1% (+£12,320) surge in the price of property coming to market, the largest monthly rise we have ever recorded at this time of year in Greater London
• Increased optimism also releasing pent-up demand as home-movers judge the election result gives a window of stability:
• 19% leap in number of sales agreed compared to same period a year ago, suggesting an active spring market
• We expect that more properties will come to market this year as seller confidence is now buoyed by increasing prices – annual rate of price increase up to 3.1%, the highest since September 2016
• We expect more sellers to take advantage of this window of opportunity and that the number of properties listed for sale will increase compared with 2019
  

There has been a 2.1% (+£12,320) monthly surge in the average price of property coming to market in the capital. These properties were marketed between the 8th December and the 11th January, so most of them came to market after the 12th December election. Given that this is the largest monthly rise we have ever recorded at this time of year, it would appear that many of these new sellers are feeling a surge of optimism. Buyers are also optimistic, with a 19% increase in the number of sales agreed compared to the same period a year ago.

Miles Shipside, Rightmove director and housing market analyst comments: “We have been seeing signs of recovery in the London market since the middle of last year, and these statistics seem to indicate a further boost, with many buyers and sellers feeling that the election result gives a window of stability. The housing market dislikes uncertainty, and the unsettled political outlook over the last three and a half years since the EU referendum caused some potential home-movers to hesitate. There now seems to be a release of this pent-up demand, which suggests we are in store for an active spring market ,with more properties being listed by new sellers than we have seen in recent years. The early bird buyers are on it and some have snapped up a property already, with the number of sales agreed up by 19% on this time last year.”

This month’s 2.1% rise in new seller asking prices is the largest that Rightmove has recorded at this time of year in London since we started our House Price Index in 2002. The previous highest January rise was the 2.0% recorded in January 2008. This has helped to push the annual rate of increase to 3.1%, the highest level in more than three years.

Shipside notes: “This is the biggest new-year price surge that we have ever recorded. However it is still a price-sensitive market, with stretched buyer affordability, so sellers should be careful not to get carried away with their pricing and miss out on this window of increased activity. One factor behind the upwards price pressure has been the shortage of property coming to market, with 2019 numbers down by 19% on 2018 and some would-be sellers postponing their moves until they judge the outlook to be more certain. This month sees new seller numbers still down on the prior year, but by a less dramatic 10%. While there may well be more twists and turns to come in the Brexit saga, with London prices now rising again and not enough properties to satisfy this buyer demand, there is an opportunity for sellers to get their property on the market for a spring move. For those who can afford to move and have been putting it off, now would appear to be a good time for them to get a view from a local estate agent on their property’s value, and a mortgage quote for the great fixed-rate deals that are currently available.”

*Borough data is based on a three month rolling average and can be used as an indicator of overall price trends in each borough over time. It is not directly comparable with the overall London monthly figures. Rightmove data market source.

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Happy 2020!

Elliot Rainbow

elliot@ernest-brooks.com | +44 (0)203 621 8881