Hertfordshire property market news and update

The housing market continues to build momentum, with all the major indices reporting strong growth. Rightmove’s index jumped by 2.3% in February - the biggest monthly increase for twenty years - and the average house price hit a record £348,804. 

Those rises are being driven by both supply shortages and the lingering effects of Covid and the desire to move for more space. There are, though, signs more property is coming onto the market. New listings and valuation requests were up by 11% in January. There is still some way to go before some form of balance is achieved, with buyer demand also up by 16% over the last year (source: Rightmove). The return to the office means London and the Home Counties is experiencing some of the biggest jumps in demand, with buyer enquiries up by 24% and prices rising by 6% in February. Such high levels of activity are ensuring the market is becoming increasingly competitive for buyers, as well as tempting more sellers to put their homes on the market.

Paul Gillespie, Rolstons' Managing Director comments:

“It seems that the fast-moving market has really hit home for sellers this month, with a number of those who are also buyers putting themselves in the best position to secure their dream home by becoming a ‘power buyer’ and getting their own home on the market first. This in turn is driving a rise in new listings compared to last year, giving the existing pool of buyers some fresh choice. A fear of missing out on one’s dream home is really driving market behaviour at the moment, as movers look to do all that they can to avoid the disappointment of being too slow to secure their ideal property.”

Experts, however, are predicting the housing market will start to cool over the next few months, as the rising cost of living and the base rate rises begin to bite. The price of many staples has been increasing for some time, but the war in Ukraine has accelerated this process. It has already pushed up the price of oil and gas, and wheat is set to follow. Wheat plays a key role in food prices and Ukraine is a major grower. Wheat is not only used in cereals, bread and pasta, it is also a key ingredient in brewing as well as providing feed for livestock, including chickens. These increases in inflation, along with several more base rate rises, are likely to stretch affordability and dampen down demand to more sustainable levels.