The average price for houses coming onto the market has increased for the fourth month straight, with homes costing on average £55,000 more in 2022 than they did in 2020.
According to Rightmove’s House Price Index, house prices reached a record £367,501, over £7,000 higher than the previous month.
However, the story for Kingswood estate agents was slightly different, with house prices currently 3 per cent lower than at the same time in 2021, when there was still a reduction in stamp duty costs.
Despite the vast majority of schemes set up to kickstart the housing market after a temporary shutdown in 2020 having already ended, prices continue to rise amidst high demand and a relatively low supply of houses.
Whilst the market has remained surging over the past two years in a way that has not been seen at any point this century, the number of sales agreed is actually 17 per cent lower than at the same time in 2021, with the number of buyers contacting estate agents down 14 per cent.
The pace of the market over the past two years has been dictated by supply and sellers, with available properties 55 per cent lower than in 2019 and likely to remain much lower than demand for much of the rest of the year according to housing experts.
When more people sell, and the expectation that rising interest rates, increases to the cost of living and the energy price cap rise tempering demand, these two factors are likely to affect the market and reduce the seemingly endless surge of house prices.
Another unique finding from the house price index is that for the first time in a while, monthly mortgage payments have become more expensive than average rental payments on average, although due to low-interest rates in the past this does not tell the full story.
Rental payments have increased by over 40 per cent over the past decade, whilst mortgage payments have only increased by 11 per cent.