One in 16 homes changed hands in 2021: The busiest year for the UK’s property market since the financial crisis has seen average house price jump £15k

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  • One in 16 UK homes sold in 2021, the most recorded since 2007
  • Property portal registers 6.7 percent housing price increase in October
  • This was a slight decline compared to recent months, however.
  • The median home price is now £240,000, up from £200,000 five years ago

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This year is going to be the UK’s busiest in terms of housing transactions since the financial crisis, as one in 16 households will change hands.

By the end of 2021, one in 16 homes will have been sold in the past 12 months – the highest rate since 2007.

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That was according to Zoopla’s latest house price index, which also reported annual house price growth in October was 6.9 percent.

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Hot market: UK set to record busiest year for housing transactions since 2007

This was an increase of 3.5 per cent in October last, but a slight decline compared to August and September 2021 when 7 per cent growth was registered.

The quarterly data also indicated a slowdown in the overall pace of growth – from 2.8 per cent in July to 1.2 per cent in October.

After 16 months of constant inflation, the median value of a house is now £240,000.

This is up from £200,000 five years ago.

In the past 12 months alone, average UK prices have risen by £15,500, with the South East and South West registering an increase of over £22,000.

However, it was Wales that saw the highest rate of growth in percentage terms in the year since October. Homes increased in value by 10.8 percent over a 12-month period.

This was followed by the North West of England, where prices rose by 9 percent.

After being hit hardest by the pandemic and the subsequent lockdown, London posted a modest price increase of 2.3 per cent.

Zoopla said the overall price hike was a result of increased demand from buyers.

Demand for new homes far exceeds supply or properties coming into the market

Demand for new homes far exceeds supply or properties coming into the market

There has been a slight decline in house price growth in October as compared to the previous two months

There has been a slight decline in house price growth in October as compared to the previous two months

Buyer demand was 28 per cent higher than the five-year average in October of the year, while the supply of homes for sale was 10 per cent lower than the 2017-2019 average of 5 per cent and 40 per cent lower than the five-year average. Average.

However, thanks to buyers looking for more spacious homes, the gap between the demand for homes compared to flats was widening.

The number of homes available for sale was more than 50 percent lower than the average levels for the past five years.

The stock of flats for sale was also lower on the five-year average, but 15 per cent more moderate.

The contrast to stock availability was also reflected in price increases, with a 1.6 percent increase in average flat price over the previous year, just above the 1.2 percent five-year average.

Meanwhile, annual price increases for all types of homes are running at 8.3 percent — nearly double the five-year average of 4.2 percent.

Grené Gilmore, Zoopla’s head of research, said more homes are expected to hit the market early next year, easing the supply and demand imbalance.

“At the end of the year the new supply will start to increase as families use the vacation period to decide on a course to take,” he said.

‘In normal years, the highly seasonal supply of homes listed for sale slows down until Christmas, but picks up rapidly in the new year.

‘On average, the supply of listings at the end of January is about 50 percent higher than at the beginning of December.

“Buyer demand will remain strong next year, but with the market normalizing in 2022, there may be an increase in the proportion of activity among movers, who are active in the market as sellers as well as buyers. This should reduce the supply bottleneck to some extent.

‘Other factors influencing prices next year include economic constraints shaped by rising inflation – which will push household costs higher.

‘Even with some interest rate hikes, mortgage rates are likely to remain relatively low compared to the long-term average, and there is more room for price increases in some of the most affordable housing markets.’

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