Although the UK might not have enjoyed the warmest summer, we are enjoying the heat of the hottest property market for more than 15 years.
This news may come as a surprise as we emerge from an unprecedented time and belts tighten nationwide to cope with the financial strains imposed by the pandemic. So why are we experiencing this boom now? In this article, we report on the current rise in house prices and the possible reasons.
Why Is The Property Market So Buoyant?
The pandemic caused many of us to reassess our living situation, forced together by imposed lockdowns, home-schooling and the necessity to work from home. Lack of space became the hot topic for many, so it’s little wonder that the number of people seeking a family home has risen by 114%, when looked at in comparison to the same period of time from 2017 to 2019. The desire for extra space to use as a home office or simply a larger garden to take indoor living outdoors is perhaps behind the interest in family homes and the move away from apartment living. The tax break provided by the Stamp Duty Holiday, introduced from July 2020 to help boost the property market at a very difficult time, also helped to increase the demand for houses and saw house prices rise as buyers flocked to take advantage.
Which Property Types Are Seeing The Greatest Demand?
Zoopla reported that, whilst the demand has increased the average price of a house by 7.3% over the last year, apartments had not experienced anywhere near similar price growth, averaging at just a 1.4% increase over the same period. However, the demand for all types of property remains high, such is the current buoyancy of the market. The cost of the average house is now £230,700 – a new high, according to the report. When compared to the average price of £177,300 some 15 years previously, this 30% increase makes for very good news indeed.
As with all good things, there is often a drawback – the demand means that property of all types is in short supply, leading to the market tipping in the favour of sellers and frustration for many purchasers. Zoopla have reported that the availability of housing stock was down by 25% in the first half of 2021, compared to the same period of last year.
Which Areas Are Experiencing The Highest Rises In House Prices?
Wales and the Northeast are experiencing the greatest increase in house prices – 10.2% and 8.8% respectively compared to last year, according to Zoopla. London was found to be the region where growth was at the lowest – just 5.6%. The news for owners of flats in London was not the best – a fall of 0.5% based on the same period. There was better news for those selling flats in the Midlands however, with an increase in price of 3.7%. Scotland enjoyed the highest rate of house price growth in flats at 5.2%
These rates of increase are possibly driven by a desire to leave the cramped confines of the city and begin a new life in the open spaces of the country.
What About The End Of The Stamp Duty Holiday?
Even with the end of the Stamp Duty Holiday, Zoopla are reporting in this article, that the market is still experiencing very high levels of demand for housing stock. Although the demand from buyers dropped 9% in the first part of July 2021, largely due to the holiday beginning to end, house prices remained on the up. House prices increased by 5.4% in June of this year, when compared to the same time last year. At a 22% increase, agreed sales for this period, compared to the same period last year, are also up. If reading this article has prompted you to want to make now your time to move, we would be only too pleased to help. We offer a professional and personal service, tailor to you and your needs. With over 170 offices nationwide, we are sure to have an office local to you. Please follow this link to find your local office and this link to begin your property search.