- 20th March 2023
- Posted by: DMM
- Category: Property Market Reports
Rightmove say that first-time buyer properties (two bedrooms or less) are leading the market into the spring with average prices just £500 lower that their record last year. First-time buyer property sales agreed in the past two weeks are just 4% behind the same period in the ‘more normal’ market of 2019, albeit 18% behind 2022.
In defiance of many predictions, Rightmove report that average house asking prices rose by 0.8% (+£2,906) in the past month to £365,357. This is mainly due to a 1.2% jump in the largest sector, ‘top of the market’ says Rightmove. The annual asking price eased to +3.0% with new seller asking prices now £5,800 below the peak in October 2022.
However, larger home sales are lagging behind as sales agreed in the last two weeks in the top of the ladder sector are 10% behind the same period in 2019.
“Typical first-time buyer properties (two-bedrooms and fewer) are leading a cautious recovery, with sales agreed in this sector improving fastest. In the last two weeks, agreed sales are just 4% behind the same period in the more normal market of 2019.”
First-time Buyer Properties Sector Likely Being Helped by Family
Tim Bannister Rightmove’s Director of Property Science says: “The beginning of the spring season sees stability and confidence continuing to return to the market as it recovers from the turbulence at the end of 2022. The pace of the market reached an unsustainable level in the last two years, and was on track to slow to a more normal level, though the speed of this slowdown to more normality was accelerated by the reaction to September’s mini-Budget. While higher mortgage rates and economic headwinds raise challenges, many potential home movers who were effectively side-lined in the frenetic bidding wars of the last two years will find that a slower-paced market gives them time to plan and secure their next move as we enter the traditionally busy spring-buying season.”
“Lagging sales agreed in the larger homes sectors are likely to be caused by a combination of factors including fewer pandemic-driven moves to bigger homes, a more cautious approach to trading up due to the cost of living, and even perhaps concern over the running costs of a larger home. Meanwhile sales in the first-time buyer sector are likely being helped by some deposit assistance from family.”
We hope the first-time buyer properties continue to lead the market and, in the meantime, you can read the full Rightmove House Price Index here. If you are looking to build first-time buyer properties then contact us today on 0207 096 2003 to discuss development finance!