Mon 18 Apr 2016
The rush to complete buy-to-let property transactions ignited a chain reaction throughout the property market, benefiting second steppers and pushing prices to record highs, the portal’s latest house price index claimed.
The index showed the average price of properties coming to the market in April increased by 1.3 per cent to £307,033.
Miles Shipside, market analyst for Rightmove, explained that the rush to beat the new Stamp Duty surcharge saw increased demand among landlords, meaning many home owners could take the opportunity to trade up.
This pushed property prices for a typical second steppers, those buying three or four-bed properties, up 0.6% since March to £257,871. That is an 8.6% increase year-on-year.
The chain reaction even hit the top of the ladder, those buying four-bed detached or five-bedroom properties, with prices in April reaching £546,232, up 1.9% on March 2016 and a 5.1% increase from this time last year.
The rush to complete is shown in the speed of sales with the average time falling to the lowest level for a year at 62 days. It took on average 72 days in March 2015.
In London during both February and March it took just 47 days to sell, according to the index.
Shipside also said March was the busiest ever month for visits on Rightmove, adding: “While some felt that there would be a stampede of existing landlords selling to other landlords, these figures indicate that many of those who sold during the buy-to-let rush were actually first-time sellers looking to trade up.
“They used the heightened demand from investors competing fiercely with first-time buyers to springboard themselves on to the next rung of the housing ladder.
“After several years of being held back from moving by post credit-crunch price doldrums, they have now benefited from a heady combination of price growth, historically cheap interest rates, and confidence of a quick sale with purchasers working to a tight deadline.”
Source: Property Industry Eye