"Last year’s unexpected mini-boom is rolling on into 2021, with new price and market activity records again defying many predictions."
While London prices have stood still (+0.2%) since the first lockdown, areas further north have seen double-digit increases. Wales leads the way at 13.0%, followed by North West (11.1%), and Yorkshire & the Humber (10.5%).
Rightmove says the North is seeing a greater imbalance between demand and supply than London, with people more likely to move locally and more able to afford to upsize.
Average London house prices are now 2.9 times higher than prices in the northern areas of Great Britain and, although still large, this is the smallest ratio recorded by Rightmove since 2013.
Tim Bannister, Rightmove’s director of property data, said: “Last year’s unexpected mini-boom is rolling on into 2021, with new price and market activity records again defying many predictions. Buyer affordability is increasingly stretched, but there’s obviously some elasticity left to stretch a bit more as many buyers are squeezing their way into higher price bands.
"This high demand, with both willingness and ability to pay more, has pushed the average price of property coming to market to a new all-time high of a third of a million pounds. In another twist, it is the regions of Britain further north that are leading the way, with some degree of catching up between average prices in London and the north. While the gap remains very large, with average prices in London still 2.9 times higher than those in the north, this ratio is now at its smallest since 2013.
"The pandemic has given a greater focus on the home, and in 2020 we saw a surge in southern coastal and rural areas. So far 2021 is proving to be the year of the northern mover, not only satisfying their pent-up housing needs, but in doing so also narrowing some of the huge price gap with London.”
Cory Askew, Chestertons’ head of sales, commented: “With lockdown restrictions continuing to ease and property prices in rural areas catching up, we expect an increasing number of house hunters to rethink their move to the countryside and opt for one of London’s outer zones instead.
“Outer areas of London have been the main beneficiaries of the SDLT holiday and continue to squeeze the last drops of opportunity out of the incentive before the June 30th deadline with strong buyer demand still very evident across our London offices. Even with new supply also up 50% compared to the same period of 2019, prices continue to rise. Unprecedented demand for houses, whether they be in Knightsbridge, Kew or anywhere in-between within our London network, are without a doubt the hottest commodity, with competitive bidding pushing achieved prices to new levels.
“Creating further urgency amongst domestic buyers to find a property in London now, is the anticipated return of international buyers as travel restrictions are starting to ease. Our offices in the Middle & Far East, for example, confirmed that their clientele is desperate to return to London.”
