First Time Buyer
Nottinghamshire is UK property hotspot as prices soar by nearly a third
Rightmove figures found that Hulme in Greater Manchester came second with average asking prices increasing by around 26% to £238,249.
Sandbanks in Poole, Dorset, took the third position with average asking prices up 22% to £1,585,246.
Previous research showed that the average asking price for a home in Great Britain had increased by 5.6% compared to 2021 and was 19.7% higher than in 2021.
Tim Bannister, Rightmove’s property expert, said that property prices had “risen exceptionally over the last three years” noting that compared to December 2019, the average asking price of a home in Great Britain has gone up by a staggering 20%.
He noted that asking prices over the prior three years had risen by around 3% and the last time similar price growth was seen was in 2013.
Regional differences in house prices
Rightmove found regional variations in asking prices with Wales reporting the biggest growth of 27% compared to 2021.
London reported the lowest average asking price growth at 11%.
Rightmove explained: “Even with region and sector variations, those who acted quickly in the early stages of the pandemic will be feeling the full benefit of the rise in value of homes.
“For those who made a big life move to the coast or countryside, they may be hoping there is no return to the days of commuting to a city office five times a week.”
Average asking prices to fall 2% in 2023
The property portal said that for the coming year it expected average asking prices to drop by 2%, which it said came after “two and a half exceptional years”.
It added that “hyper-local differences between sectors and segments” would become “even more pronounced”.
Rightmove said pricing would depend on types of property available, desirability and affordability in each location.
However, it said it did not expect an oversupply of available properties via forced sales to limit major price falls.
The firm also suggested there would be a “readjustment” for buyers and sellers as the market settles, adding that buyer affordability would likely be more stretched.
Rightmove: ‘2023 may favour bold sellers’
Bannister said he expected asking prices to fall this year as the “frenetic period for the market is over”, and sellers in areas that benefitted from pandemic price growth “may be willing to give up some of their gains in this calmer market in order to negotiate a successful sale”.
However, the company said that sellers may not be quick to drop prices if they don’t see big competition in their area.
“2023 may favour bold sellers who look to offset a lower offer on their current home by offering less on their onward purchase if they have made gains during the pandemic on their property and are willing to give some of these up,” Rightmove explained.