An unusual price forecast based on conveyancing quotes suggests the housing market is to continue busy over the summer with more price rises.
Comparison site Reallymoving has analysed data from 31,000 conveyancing quote forms over the last three months to provide what it calls “one of the earliest snapshots of housing market outlook - and what’s actually been agreed between buyers and sellers.”
It says prices will rise again by up to 3.7 per cent by the end of July, because despite warnings from agents and surveyors of limited new supply, activity remains exceptionally strong with conveyancing quote volumes in April some 60 per cent higher than normal levels for the time of year.
Reallymoving captures the purchase price buyers have agreed to pay when they search for conveyancing quotes through the site, typically 12 weeks before they complete.
The site says stamp duty savings may have been wiped out by price rises, but buyers are undeterred, with a large proportion having accrued substantial savings during lockdown and in a position to review their location thanks to permanent flexible working arrangements.
Borrowing costs remain low and those with plenty of equity are in a strong position to move up the ladder to a property that better meets their new requirements.
Reallymoving chief executive Rob Houghton says: “A shift in the priorities of homebuyers has resulted in strong demand from equity-rich homebuyers higher up the ladder who, freed from their daily commute, are able to look further afield for a home with the kind of space and location they’ve long dreamed of.
“Backed by lockdown savings and encouraged by rock bottom interest rates, many people are determined to secure a home that meets their new needs, despite fierce competition – and it’s these movers who are driving sharp increases in average prices.
“Despite this, first time buyers continue to maintain a market share of around 55 per cent – which could rise further now the government-backed 95 per cent loans are available.”