Mixed fortunes for property owners as prices soar
House prices are breaking new records in affluent areas, but while this is good news for those with perfect properties, many sellers are facing challenges – especially with first-time buyers unable to afford high costs of purchase and maintenance.
According to property website Rightmove, the average asking price of homes has risen by nearly 1% compared with a month ago, now standing at £294,834. This is 6.4% higher than the same time in 2014. However, these figures are largely due to properties that sell easily due to location and quality; and are in great demand due to shortage of supply.
The outlook is rather different for anyone with a home in an area that’s less than perfect, or with a property requiring aesthetic updates or maintenance. High prices mean that home buyers are more likely to be picky about problems – and mortgage valuations may not reflect agreed sale prices, meaning a bigger investment required by purchasers.
Traditionally, many first-time buyers have opted for homes that are unappealing to those further up the ladder, usually due to area and condition. But even prices for these types of property have become unrealistic for many first-time buyers, meaning that some homes hang around on the market for a long time. This is very frustrating for sellers needing a quick sale.
“High demand, lack of suitable supply, and increasingly stretched affordability are leading to some extremes in market forces in different sectors and parts of the country,” said Rightmove director Miles Shipside, quoted in The Guardian.
“One of the effects is that those who own property that is in most demand, either by type or location, are seeing their values continue to rise. Their properties are rich in features and benefits that others want to buy, and as a consequence they are getting proportionately richer than either owners of less desirable homes or those who are not on the housing ladder at all.”
Do you need a quick move, but you’re struggling to sell your home? Just ask National Homebuyers for advice, as we buy any house. Call 08000 443 911 or request a call back to find out how much you could get for your property.