The rush to beat the stamp duty surcharge deadline has pushed average asking prices to a record high according to Rightmove - and given the portal it biggest ever monthly hit rate.
The average price of a property coming to market has risen 1.3 per cent in the past month - equivalent to £3,843 - to set a record high of £307,033.
The portal says the April 1 surcharge deadline helped ignite “an onward chain reaction” energising the higher sectors of the market. Rightmove says this month’s rise is driven by second-stepper and top of the ladder transactions, while smaller properties in first-time buyer territory have seen a monthly price drop of 1.4 per cent.
“Chains need a buyer at the bottom to enable everyone to move, and that was boosted by investors looking to avoid [the surcharge]” according to Miles Shipside, Rightmove director and market analyst.
“While some felt that there would be a stampede of existing landlords selling to other landlords, these figures indicate that many of those who sold during the buy to let rush were actually first-time sellers looking to trade up. After several years of being held back from moving by post-credit-crunch price doldrums, they have now benefitted from a heady combination of price growth, historically cheap interest rates, and confidence of a quick sale with purchasers working to a tight deadline” he says.
Despite demand from some buy to let landlords dropping away as the deadline neared, Rightmove says it recorded its busiest ever month for visits to the website in March.