Industry reaction to the latest Rightmove House Price Index.
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In brief, the latest index shows that:
- The national average price of property coming to market hits a new all-time high after rising by 0.3% (+£1,091) this month, to £338,462.
- This new record high is only £15 higher than the previous record set in July, a sign that prices are now stabilising.
- Hottest ever competition to buy, with buyer demand per property for sale more than double pre-pandemic levels.
- The rise of the ‘power buyer’ continues – those who have already sold their own home, have cash in the bank, or are first time buyers with a mortgage agreed, are in a more powerful position and are out-muscling those who still need to sell their current home.
- Early signs of a better-balanced autumn market with more homes coming up for sale to help with buyer choice, with the number of new listings in the first two weeks of September 14% higher than the last two weeks of August.
Rightmove House Price Index Reveals That Property Prices Will Remain Robust
Managing Director of Barrows and Forrester, James Forrester, commented:
“It’s to be expected that the astronomic rates of house price growth seen since the introduction of the stamp duty holiday will now start to subside as we approach the final deadline. But don’t be fooled into thinking the market will now deflate like a cheap birthday balloon.
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.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“We’re heading into an extremely busy period where the property market is concerned and so the expiry of the stamp duty holiday and its impact on the market is going to be far less pronounced than first feared.
With the stamp duty holiday causing manic market conditions and long delays to transaction times, many homesellers and buyers chose to retreat until the rush had subsided, having long given up hope of a stamp duty saving.
However, we will now start to see them emerge from their boltholes and this additional stock will help rejuvenate the market throughout the remainder of the year.
The London market, in particular, is poised for a strong finish with an abundance of stock now available and a sharp uplift in domestic and foreign demand being driven by pandemic restriction lifting both where the workplace and travel are concerned.”
The Rise Of The Power Buyer
Founder and CEO of GetAgent.co.uk, Colby Short, commented:
“It’s fair to say that the process of selling first to improve your buying position has long been a tactic utilised by UK homebuyers and so we’re not seeing the ‘rise of the power buyer’ as such.
That said, a high level of competition for a limited level of stock has highlighted the importance of a strong buying position when it comes to securing your ideal home.
Unfortunately for the nation’s first-time buyers, those with an existing property to fund their onward purchase are in a far stronger position when it comes to placing an offer and this has pushed up the cost of buying quite considerably. As a result, those looking to buy their first home are now paying 12% more compared to just 12 months ago.
However, the cost of borrowing remains very favourable and given current market delays, some sellers will place the stronger position of a first-time buyer above that of a few thousand pounds extra.”