The UK property market is showing no sign of slowing down any time soon after yet another house price growth. Due to a shortage of homes for sale but a high demand of people looking to move, house prices jumped by 12.6% in February - which is an increase for the seventh month in a row.
The average price of a home in the UK now stands at £260,000, according to Nationwide, which is the highest ever on record.
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Greater Manchester estate agents are very much seeing the effects of the current property market come into play, with many sharing concerns that homes are becoming even less attainable for first-time buyers.
The price of a typical home across the country now is now a huge 20% higher than it was in February 2020, with the average house price in the region currently around £249,400 according to Rightmove.
In response to the latest hike in house prices, local property experts have shared their response and given an insight into what you can expect if you are searching for a home in Greater Manchester this year.
'It’s all boiling down to a race for space'
Jake Rowson, sales director at estate agents Ryder & Dutton says there is currently a 'race for space' across Greater Manchester.
“The property market in Greater Manchester is performing exceptionally well, and house prices across the area are on the up due to a huge surge in buyer demand," he said.
"In February 2021, when people were racing to buy before the end of the stamp duty holiday, 2,051 new buyers registered with us. This February, despite there being no stamp duty incentive, that number increased by 25% to 2,791.
“It’s all boiling down to a race for space. Many people’s working patterns have now settled down post-pandemic, and now they know they won’t be going back to the office full time, they want bigger homes with space for a proper office."
Jake also says that the house price growth is forcing first-time buyers to get on the property ladder quicker.
“The number of first-time-buyers registering with us in Greater Manchester is also rising, as younger people begin to feel more secure in their jobs post-pandemic," he said.
"First-time-buyers are also coming to the realisation that house price growth is showing no sign of slowing, and many feel like they need to get onto the property ladder before prices increase more.
"Potential interest rate rises are also having the same effect. This means there’s huge demand for traditional first-time-buyer properties and when they go up for sale, demand is always huge, which drives prices up further."
The experienced sales director said there is no sign of house prices slowing.
“The average price of homes we sold in Greater Manchester this February stood at £260,000, up 27% compared to February 2020, when it stood at £190,000, and this price growth shows no sign of slowing," Jake said.
"At the start of the year, I predicted house prices across the area would increase by about five per cent over the course of 2022, but the way things are going, I think that may have been a conservative estimate.
"There are other factors currently at play of course, like the rising cost of energy bills and the war in Ukraine, but if demand continues to outstrip supply as it has done for the past few years, prices will continue to grow at record levels throughout 2022.”
'I feel for first-time buyers'
Steve Litt, director of Steve Litt Bespoke Estate Agent says house prices are particularly high in Stockport.
"There’s still a short supply of homes available, and the buyer demand is simply so great, so buyers are getting into bidding wars for most properties they go for," he said.
"The demand is just as much as last year, if not slightly more. The average house price in Cheadle where I’m based has exceeded £350k now, which is a big increase over the last few years but shows the market is still strong."
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Steve believes that the small number of homes available is the biggest problem for first-time buyers.
"I feel for the first time buyers; but it isn’t the affordability which is the problem it’s the lack of houses available. I sometimes see the same first time buyers over and over again at open days, as locally it’s the same people going for the similar houses," he said.
"The mortgage rates are still very good out there, so most first time buyers I know are fixing their deals for as long as they can increase the interest rates rise again."
"Overall everywhere in Greater Manchester has increased, south Manchester especially so Cheadle, Cheadle Hulme, Didsbury and the Heaton’s," Steve added.
"This is not just because they are desirable places to live but have outstanding local schools which helps for family’s looking to move.
"I though house prices would drop just with inflation going up and interest rates increasing but with the demand still there, I can see it rising even more but a lot steadier than the last few years."
'First-time buyers may get even less for their money as the year goes on'
Gareth Yates, Purplebricks area director in Manchester says properties are having more than 100 viewing requests.
"The market always starts slightly slower at the start of the year but picks up steam as winter turns to spring. Expect March to be an even busier month," he said.
"We are starting to see more properties with over 100 viewing requests in places like Chadderton, Eccles and Bardsley as well as the other popular areas like Sale, Didsbury, and Prestwich.
"If you are looking to buy your first property in south Manchester, you can expect to pay much more than the average house price. However there are still plenty of bargains in other upcoming hotspots like Gorton and Failsworth.
"Greater Manchester is a hugely diverse area and you could be a 15 minute drive from a £1 million property to a £80,000 one."
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Gareth advises that first-time buyers should act quickly in what is currently a 'sellers market'
"It's a busy market and definitely a sellers’ market at the moment. First-time buyers may find that as the year goes on, they get even less for your money so make sure you act quickly.
"There have been some huge price increases in areas like Northenden, Levenshulme and Monton. This huge capital growth has created pockets of interest for overseas buyers looking for investment away from London."
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