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Monday, March 23, 2015

Rightmove's House Price Index for March

  • Price of property coming to market up 1.0% (+£2,748).
  • Average new seller asking price just £30 below June 2014's record. 
  • BTL investors cashing in pension pots may drive low end of the market prices up.
  • Number of newly-listed properties up by 3.2% compared to last month.
Rightmove's market analyst, Miles Shipside, comments: 

“The distraction and uncertainty of an election typically force sellers to price more keenly, though this is often short-lived. The MMR introduced in April 2014 laid out a much needed longer-term framework for responsible lending, but within a year its dampening effects have been muted by high demand outstripping supply in many locations, and by buyers putting down larger deposits. The price of property coming to market is now just £30 off the record set nine months ago. The MMR has been a positive restraint on what buyers can afford to pay and has assisted in lessening the price rise pace. However, with new-build levels remaining low and only a small increase in properties coming to market compared to last month, the supply side is still a critical but missing part of the jigsaw if pent-up demand is to be satisfied.”

The rise of the granlord

Shipside goes on to reflect on the increasing activity from pensioners looking to invest in BTL - 

 “Agents report a high level of interest from new landlords, or ‘granlords’, who are typically first time, retirement age, buy-to-let investors. With the highest returns for the lowest investment being at the lower end of the market, the first-time buyer property sector will be the greatest recipient of any increase in demand from investors with substantial pension pots. Unfortunately flats and terraced houses with two bedrooms or fewer are coming to the market in smaller numbers than the middle and upper tier sectors, so are the least prepared for an up-surge in demand.”

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