The value of property in Leytonstone continues to increase, owners who are about to put their homes on the market will be delighted to hear. The amount prices have jumped by over the past month is 1.1 percent, according to the monthly Rightmove Price Index portal. It brings the average price in the area now to £608,799 and makes the Leytonstone area the second highest property price rise in London, only Transport for London (TfL) Zone 6 was higher with a 1.2 percent increase.
But don’t be fooled into thinking it’s a seller’s market. Buyers will be a little happier to know that the figure for the value of property in TfL Zone 3 is actually 0.5 percent lower than the same time last year. So, once again it’s swings and roundabouts if you’re in the market for buying and selling.
Why prices are higher in March
So, why the price increase? Well, property analysts put it down to three main reasons. The first is that sellers know there will be plenty of buyers over the next couple of months since spring is traditionally the busiest time of the year for people to start thinking seriously about buying property.
Another reason – and possibly the strongest – is that buyers are looking to secure a mortgage before the expected Bank of England base rate increases later this year. And the third reason – bizarrely – may be the weather. That’s because analysts believe the heavy snow of recent weeks may have played a part in preventing many sellers from putting their homes on the market. And, a shortage of supply coupled with strong demand – of course – will always lead to higher prices. Rightmove actually reported a five percent drop in the number of properties coming to market compared to the same period in 2017.
Miles Shipman, Rightmove’s director and housing market analyst said the conditions meant that new properties coming onto the market were at their highest-ever prices for four of 11 regions in the UK. In London, the average property went up 1.5 percent to £4,503.
First-time buyers facing price increases
Things may have seemed like they were getting better for first-time buyers thanks to Chancellor Philip Hammond’s decision to cut stamp duty for homes at £300,000 and under, but the sector of the market is looking at house valuations (for two bedrooms and under properties) which are sitting at record price levels. The average starter home is now £189,840 – a rise of 2.2 percent on the same period last year.
Second steppers face similar market conditions
And it’s not much better for second steppers. Family homes of three to four bedrooms are up three percent price on prices for the same time last year, making the average three to four bedroom semi-detached property come in at around .£272,031.
Buyers shouldn’t be too despondent
Despite all the record price rises, the property portal’s Shipman cautioned sellers not to ask for too much money. That’s because of affordability. As one estate agent beautifully put it: “…just because sellers are asking for more money it doesn’t mean buyers will be willing to part with it.”
If you would like to discuss your selling options with us, contact us to get a free valuation and a complimentary Hometrack Property Report worth £19.95.