Whatās Going On Here?Data out on Monday showed that the average UK house price hit a record high this month, but Brits will pay anything to escape life in the capital. What Does This Mean?Itās a great time to be a Brit with a house to sell: there arenāt many on the market, and hopeful homebuyers ā backlogged after holding off during the pandemic ā have been keen to lock in mortgage deals before interest rates rise higher. In fact, Rightmove reported that there were over twice as many buyers than sellers this month, the biggest mismatch ever recorded by the UK housing company (tweet this). Buyers had to act fast amid all that competition: an unprecedented 22% of homes that were put up for sale were snapped up within a week. And they had to pay more too: the average house price in the UK rose by 1.7% this month from last, the biggest March increase in 18 years. That brings the yearly increase up to 10.4%, and means the UKās average house price is now nearly Ā£355,000 ($470,000) ā the highest on record. Why Should I Care?Zooming in: Escape to the country.
London was the only region to see a drop in house prices this month. Once the breeding ground for stressed-out commuters, plenty of the cityās dwellers have left to work remotely from pastures new. Specifically greener, quieter pastures: Brits are after bigger houses with room for offices, and Rightmove says the scenic Cotswolds and peaceful Suffolk have been some of the new go-to spots for homebuyers recently.
The bigger picture: It wonāt last forever.
Rightmove reckons buyers will outnumber sellers for a while still, but thinks the market could slow down in the second half of the year. After all, soaring inflation and rising interest rates ā which are set to push up mortgage payments ā will probably put potential homebuyers off, and might make it impossible for them to buy even if they wanted to. | 