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.
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.