The town of Brixham in Devon has been named as the UK’s asking price hotspot for the last year. According to data from property website Rightmove, asking prices in the small fishing town have seen the largest annual increase in the UK.
So, where else in the country have property asking prices risen significantly in the last year? And if you are an aspiring buyer, is now a good time to buy a house? Read on to find out.
[top_pitch]
What’s happening with UK house prices?
House prices in the UK have skyrocketed in the past year.
The latest figures from Halifax show that house prices have risen at the fastest annual pace in 15 years to hit a new record high of £278,123.
Halifax also reports that house prices grew by 0.5% in February, marking the eighth consecutive month of growth.
Where have asking prices risen the most?
According to Rightmove, the town of Brixham in Devon has seen the biggest asking price rises in the UK. High demand has resulted in the average asking price of a house in the town rising by a staggering 25% (to £329,699) in February compared to the same month last year.
Rightmove reports that the town has been steadily attracting house-hunters since the beginning of the pandemic and is fast becoming one of the most sought after seaside towns in the country.
Meanwhile, Jesmond in Newcastle Upon Tyne has seen the second-biggest annual increase in asking prices. Prices in the town have risen 23% over the last year to £361,564.
The third-biggest rise has been in Farnham in Surrey, where prices have jumped 22% over the past year to take the average asking price to £728,413.
Closing out the list of the top five places that have seen the biggest price increases are Raunds in Northamptonshire, where prices have risen 21% to £281,279, and Gedling in Nottinghamshire, where prices have also risen 21% to £256,897.
Here is the complete list of the top ten places with the highest price increases over the last year.
Rank
Location
Average asking price (Feb 2022)
Annual price growth
1
Brixham, Devon
£329,699
25%
2
Jesmond, Newcastle Upon Tyne
£361,564
23%
3
Farnham, Surrey
£728,413
22%
4
Raunds, Northamptonshire
£281,279
21%
5
Gedling, Nottinghamshire
£256,897
21%
6
Newton-Le-Willows, Merseyside
£203,150
21%
7
Cowes, Isle of Wight
£342,834
20%
8
Heysham, Lancashire
£189,527
20%
9
Childwall, Merseyside
£305,483
20%
10
North Walsham, Norfolk
£274,490
20%
[middle_pitch]
Is now a good time to buy a home?
Buying a home right now is undoubtedly more expensive than it was before the pandemic. The rapid increase in asking prices in the above locations is proof of this.
Prices are unlikely to fall anytime soon. As a result, some aspiring buyers might be tempted to hold off their search and wait to see if prices come down.
Unfortunately, that could turn out to be a risky game. Aside from the possibility of further increases in house prices, the Bank of England is expected to raise the base rate further in 2022. This could make borrowing more expensive and limit the range of mortgages available.
If you find a home that meets both your needs and your budget, it may be better to bite the bullet rather than wait for a drop in asking prices, which may or may not occur.
However, if you can’t afford to buy right now because of high prices, the best thing to do is to keep saving money so that you’ll be ready to pounce when the right opportunity arises in the future.
Remember that there are a variety of products available to help you boost the amount you save for a home. For example, if you are a first-time buyer, opening a lifetime ISA (LISA) can boost your savings by up to 25%. This type of ISA allows you to invest up to £4,000 per year and receive a government bonus of 25%.
So, if you invest the maximum allowed amount of £4,000, you will receive a free £1,000 bonus from the government to use towards the purchase of a home.
The post Revealed! The spots where house asking prices have risen the most appeared first on The Motley Fool UK.
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