The COVID-19 pandemic caused a spike in the housing market that saw many people living in urban areas moving away from the cities and seeking properties that offered more space. The increase in business’ changing to full or hybrid ‘work from home’ models saw buyers priorities change. There was a decrease in demand for properties nearer the workplace. This has seen the commuter zone expand as buyer’s are more willing to travel further, now that they are travelling less.

With all the doom and gloom surrounding the cost-of-living crisis, the housing market still remains relatively strong with activity levels still significantly higher that before the pandemic hit. The average asking prices for properties has increased by over £55,000 in the past couple of years. The pandemic has been a clear driving factor in these rises as the years before it hit the rises were only at £6,000. The growth is unprecedented for Rightmove who have been tracking prices now for more than twenty years.

Rightmove believes the prices are being driven from the lack of homes for sale. Buyers are still outnumbering sellers on the market with available properties on the market being down 55% when compared with 2019. The increased competition is seeing buyers enter bidding wars; paying over the asking price; and even appealing to seller’s good will. Buyers are now selling themselves to the sellers, who have been known to favour families over investors when selling their homes.

The increased demand is highest for two- and three-bedroom semi-detached homes according to Rightmove and we at Whoobid are seeing the same trend.

This 3 Bed end terraced house in an attractive cul-de-sac location in Essex, needed modernisation but would make an ideal family home once renovated. It was being sold under the modern method of auction to open it up to mortgage buyers. A buyer was found for the property in just 9 days and was able to immediately exchange on the property and for £20,000 over the Guide Price.

This property in Blackpool is also a three bed traditional end terraced house in need of modernisation throughout. It only went live on Whoobid.co.uk before the weekend and is already seeing a huge amount of interest from prospective buyers.

Halifax may be predicting that the house price growth is going to slow further as the cost-of-living crisis stretches buyers affordability but the statistics from Rightmove suggest that the supply and demand will continue to remain out of kilter until, at least, the end of year. Whilst sellers continue to be outnumbered by buyers, those buyers are going to continue to compete for properties and as a result drive up the prices.

The most affected from the cost-of-living crisis are the solo first time-buyers, who are finding that, although, they could afford the potential mortgage payments, they are struggling to raise the funds for the initial deposit. For these buyers, while purchasing property has become increasingly difficult, it is by no means impossible. Many have begun turning to the bank of ‘Mum and Dad’ to help make-up their much-needed deposit and we are seeing many pensioners gift thousands in order to help their adult children battle with inflation.

The cost-of-living crisis continues to rage but house prices continue to rise as buyers compete for the small number of properties coming to market and subsequently drive-up the prices. It remains a sellers market and a good time to sell property.

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