In a competitive property market, speed is paramount

Commenting on today’s ONS UK House Price Index for October 2021, Nick Leeming, Chairman at Jackson-Stops said:

“Despite a slight fall in the rate of increase in average house prices from September, today's numbers remain higher than the previous peak seen in June showing that lack of supply has continued to govern the 2021 housing market as we head towards the end of the year.

"In a competitive market, speed is paramount and how quickly a buyer can proceed is often what will clinch a sale with vendors. A large number of people who lost out on buying their countryside home this year due to strong competition in the market are now in rented homes and are perfectly positioned to buy a permanent base in the areas they have tried and tested over the last 12 months. Historically, cash buyers achieve a discount when purchasing properties due to their favourable buying position. Our latest research however shows that cash buyers have been digging deeper this year than prior to the pandemic, spending nearly £32,000 more than in previous years, and in the South West paying 99% of the average house price.* We are recommending that those buyers not in a cash position to at least have a mortgage in principle agreed and as much paperwork progressed as possible.

"Buying a home is a long-term commitment, and the desire to own a home is one nested deep in the nation's psyche. Undoubtedly we’ve seen sellers delay listing their property until they feel confident that they can find their suitable next step. However, we would expect that the traditional new year spike in activity combined with a possible interest rate rise will bring a little more confidence for potential movers. We would anticipate a tempering of what has been a fervent market with new listings coming to the fore as the year progresses."

*Funding status statistics were taken from the Land Registry House Price Index from September 2019 to September 2021.