By Elliot Thunder-Blair – Partner Hunters Estate Agents
Strong Demand and Lower Interest Rates Push Prices to Record High
The property market in Barnet, Whetstone and across North London has seen increased buyer demand throughout May as mortgage lenders cut interest rates, bringing relief to both buyers and existing homeowners.
Three of the UK’s big mortgage lenders, HSBC, TSB and Barclays have all announced mortgage interest rate cuts to over 100 mortgage deals, after several weeks of increases, and brokers are confident that the cuts will prompt other lenders to follow suit.
Many of the UK’s mortgage lenders increased the cost of borrowing last month after forecasts of an interest rate cut by the Bank of England were pushed back because of stubborn inflation and a rise in swap rates, a market indicator used by banks and building societies to price their fixed loans.
Although when the Bank of England held borrowing costs at 5.25 per cent earlier this month, a 16-year high, it signalled a rate cut could come as soon as next month, particularly given last week’s news of the reported fall in UK inflation.
UK inflation fell to 2.3%, which is just shy of the Bank of England’s target of 2%, which marks its lowest level in almost three years.
Mortgage markets have therefore, adjusted their forecasts, signalling a potential end to the recent trend of lenders increasing their rates and resulting in the announced cuts.
Asking Prices at Record High
According to the recently published House Price Index from property portal Rightmove, asking prices hit a record high in May as homeowners, buoyed by the news of lower mortgage interest rates and stronger buyer demand, have become more optimistic.
The latest house price index shows that the average price of property coming to the market reached a new record of £375,131, rising by 0.8% at the start of May. Asking prices are 0.6% higher than this time last year, although there is of course no guarantee that homes will sell at these prices.
The data from Rightmove confirms that the price growth continues to be led by the largest-homes, top-of-the-ladder sector, with prices in this sector up by an average of 1.3% compared with last year and suggests that the market is being driven by pent-up demand.
The report further confirms that the number of sales being agreed during the first four months of the year is 17% higher than last year, outstripping the 12% increase in the number of new sellers coming to market, highlighting the strength of buyer demand.
The real issue within the property market is not finding a property or indeed a buyer, but transaction times, this is confirmed in the Rightmove report. The average time it takes for under-offer homes to reach completion is a painful 154 days, that’s almost 6 months to complete.
Recently Listed by Hunters
Here are just a few of the recently listed properties from our offices in Barnet and Whetstone –
House for Sale in London – Guide Price £1,475,000
House for Sale in Barnet – £895,000
House for Sale in Barnet – £635,000
House for Sale in New Southgate – £325,000
To see the very latest homes coming to the market, click ‘New to market homes’, this lists all of the very latest homes as they come to the market.
See our ‘Recently Sold Properties’.
Mortgages
If you are considering a move, It is more important than ever to shop around for the best deals and remember that not all deals are advertised, some of the best deals are only available from mortgage brokers.
Contact mortgage advisors Simpson Bowers, a firm of local independent financial advisors on
020 8275 8555. www.simpsonbowers.co.uk I can highly recommend them as they have helped many of our clients, including myself.
Ready for a move in Barnet or Whetstone?
Please feel free to call me at Whetstone or Michael at our Barnet office if you are considering selling your home in the Barnet and Whetstone areas, either for an informal chat about the market and how we might help you with this or to book a market appraisal.
You can also use our Instant Online Valuation tool.
Good luck with your house hunting.
Elliot Thunder-Blair – Hunters
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