UK Property Market At Busiest In 14 Years
The UK’s property market is set to record its busiest year since 2007, with 1 in 16 homes changing hands in 2021.
2021 is expected to mark the country’s busiest property market in 14 years in terms of property transactions, as homeowners seek out more living space amid the pandemic. This is according to Zoopla’s latest house price index.
Zoopla’s data reveals that, by the end of 2021, 1 in 16 houses will have changed hands, making this year the busiest property market since 2007.
High demand is pushing up the rate of annual house price growth, which is tailing at 6.9%, up from 3.5% in October 2020. Nonetheless, the growth marks a slight easing back from the growth above 7% seen in August and September. A slowdown in the overall pace of growth is also indicated by the data.
The average value of a home in the UK now stands at £240,000, up from £200,000 five years ago. The past 12 months alone have seen the average price increase by £15,500.
While buyer demand is currently 28% above the 5-year average, the supply of homes being put up for sale in 2021 has been running between 5% – 10% below the averages seen in 2017 and 2019.
However, despite some interest rate rises, it is likely that mortgage rates will stay relatively low compared to long-run averages. Additionally, there is also greater space for price growth across some of the country’s most affordable housing markets.