House prices have surged by 2.3% following Boris Johnson’s general election win
THE average asking price of a home has surged by £6,785 following the general election.
The 2.3 per cent boost is the biggest month-on-month rise at this time of the year since property website Rightmove began the statistics in 2002.
The jump pushed the yearly growth rate in asking prices to 2.7 per cent, the highest level since July 2017, Rightmove added.
Between December 13 to January 15, inquiries to estate agents rose by 15 per cent compared with the same period a year ago.
This led to a 7.4 per cent rise in the number of sales agreed, Rightmove said.
The average asking price on a UK house now stands at £306,810 - up from £300,025 in December.
The boost came right after Boris Johnson led the Tories to a landslide win in the election on December 12.
His newly found majority has led to improved confidence among home owners and buyers as well as property professionals.
What does this mean for first-time buyers?
HOUSE prices are rising and Boris Johnson has a majority in government - here's what it means for first-time buyers.
If you’re looking to get on the property ladder, remember that these are average asking prices and not the prices that buyers are agreeing to pay, independent property expert Henry Pryor told The Sun.
He said: “At this stage we can only confirm that it has made estate agents more optimistic, the sales data won’t be published until Easter.”
“First time buyers should not panic. We are not going to see this sort of increase continue.”
Also keep in mind that house prices are based on the price and availability of credit, he added.
This means that if interest rates go up, house prices paid for by buyers will fall.
Yet you should only go for a property and mortgage you can afford even if interest rates rise.
In the Queen's speech last year, the government promised to help first-time buyers by launching the First Home scheme that will see local people get a 30 per cent discount on property.
The government claims this will save buyers tens of thousands of pounds when becoming homeowners.
Details on how this will be funded have not yet been revealed so we're hoping the Budget on March 11 will clear this up.
Boris Johnson had previously also planned a radical shake-up to stamp duty, but it was dropped by the Tories in their manifesto.
It would have seen the threshold raised from £125,000 to £500,000 as well as lowering the top rate from 12 per cent to 7 per cent.
Earlier this week, a report found that house sales have risen for the first time in seven months following the election.
Rightmove director Miles Shipside said the statistics show that buyers and sellers feel "a window of stability" following the election result.
He added: "The housing market dislikes uncertainty and the unsettled political outlook over the last three-and-a-half years since the EU referendum caused some potential home-movers to hesitate.
"While there may well be more twists and turns to come in the Brexit saga, there is now an opportunity for sellers to get their property on the market for a spring move."
Meanwhile, Marc von Grundherr of estate agents Benham & Reeves, said: "It doesn’t matter what your stance is on Boris or the election result, even the slightest inkling of returning market stability has been enough to reignite the fires both where buyer and seller activity are concerned.
"There was an instant uplift in buyer commitment following the result and those acting fast enough were able to secure some very favourable deals.
"However, a tsunami of buyer demand soon spurred an increase in asking prices and savvy sellers were quick to ride the turning tide to ensure they secured the best price for their property.
"We shouldn’t be surprised if this is only the start of a very positive new decade for the UK property sector."
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy equity loan - The government will lend you up to 20 per cent of the home's value - or 40 per cent in London - after you've put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property. You can no longer open a new account, but existing account holders have until December 1 2030 to claim the bonus.
Lifetime Isa - This is another government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the government will add 25 per cent on top.
Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.
"First dibs" in London - London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative - A government scheme that was supposed to see 200,000 new-build homes in England sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest on the website.
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Keen to buy or sell a house? We've spoken to experts to find out exactly what they think is in store for the property market in 2020.
Last month, Halifax reported that house prices had risen by 2.1 per cent in the past year.
Meanwhile, the average house price is predicted to be £35,000 higher in five years' time.