The UK’s largest online real estate portal and property website, Rightmove, has issued new figures revealing the price of property coming to market in the UK has risen by 2.3% in February 2022.
The property portal states that this is an increase of £7,785, the biggest monthly jump in pounds recorded by Rightmove in more than 20 years.
This new record high means that average asking prices have now risen by nearly £40,000 in the two years since the pandemic started, compared to just over £9,000 recorded over the previous two years.
The pandemic continues to have an effect on many home moves. This month’s price growth has been driven primarily by the “second stepper” sector – those who may find themselves in need of more space and are now ready to move on from their first homes.
As the final pandemic restrictions are finally coming to an end, and returning to the office is encouraged or required by many businesses, London has recorded the biggest jump in the number of buyers sending enquiries of any region (+24%), a new price record, and its highest annual rate of price growth since 2016.
“The data suggests that people are by no means done with their pandemic-driven moves. Such a significant societal event means that even two years on from the start of the pandemic, people are continuing to re-consider their priorities and where they want to live. As the final legal restrictions look to be ending soon, and more businesses are encouraging a return to the office for at least part of the week, we now have a group of movers who are looking to return closer to major cities, or at least within comfortable commuting distance of their workplaces,” said Tim Bannister, Rightmove’s director of property data.
“High demand and a shortage of available stock are supporting a rise in prices and a new record average asking price this month. The rising cost of living is undoubtedly affecting many people’s finances, especially those trying to save up enough for a deposit to get on the ladder or to trade up. However, despite rising costs and rising interest rates, the data right now shows demand rising across the whole of Great Britain, with many people determined to move as we head into the spring home-moving season,” added Mr. Bannister.
Global markets react to Russia’s invasion of Ukraine
As property prices in the UK continue to rise the same cannot be said of the world’s stock markets.
Markets around the world were rocked today, Thursday February 24, as Russian forces invaded Ukraine, tipping a long diplomatic standoff into what US President Biden said was “a senseless military conflict.”
Russian President Vladimir Putin declared a “special military operation” early this morning, two days after formally recognizing two breakaway regions in eastern Ukraine as independent. Reports soon emerged of explosions in the capital of Kyiv and other cities around the country as missiles were launched, while more Russian troops arrived on the southern coast of Ukraine.
As stock markets show volatility many investors are looking towards property once more as a safer haven than the trading platform. Real estate is again proving to be the best investment option, it is also the safest option for investing your money to avoid losing its value to inflation.