UK house prices hit all-time high

House prices in Britain have hit an all-time high. According to Rightmove’s latest house price index, the average house price increased by 0.3% in September, equating to a £1,091 rise. The average cost of a home in the UK is now £338,462, a new record high.

The rise in the cost of property to record figures has been attributed to fierce competition among buyers, who are competing for a record low number of properties available for sale.

Forecasts that the market will deflate as the stamp duty holiday comes to an end in October are being ruled out by some as demand from buyers remains high. As one estate agent told Yahoo Money: “Buyer demand is extremely high and property prices will remain robust, largely driven by second and third rung buyers upgrading to larger, higher-value homes.”

“Competition among potential buyers to secure their next home is now more than double what it was this time in 2019,” they added.

September’s increase follows are rise in August, when, according to figures from the Nationwide building society, the industry witnessed a monthly rise of 2.1%. What was the second highest in 15 years, saw the cost of an average home increase by £4,628.

Again, the strength of the market in August was associated to the lack of properties for sale, as well as buyers attempting to complete transactions before the stamp duty threshold returned to its pre-pandemic figure of £125,000.

Despite the stamp duty savings coming to an end, some experts are saying that prices may be kept high in coming months, as the demand from buyers outstrips the number of new properties coming on to the market.

With the property marketing remaining optimistic, now could be a good to sell or buy a home. If you are thinking about buying a property at auction, check out the lots we have available in our next property auction. If you are thinking about selling at auction, contact the Auction House London team today to arrange a free valuation.