On the 23rd Of March 2021, Zoopla published their latest house prince inflation report. It stated that the current Annual UK house price growth to date is 4.1%. This is now the fourth month in a row where we have seen consecutive annualised price growth of above 4%. The last time this occurred in the UK was in the Summer of 2017.
On a city level, Manchester and Liverpool performed best with 6.6% and 6.4% annual growth.
Following the Chancellors Budget announcement earlier this month, Zoopla saw a 24% increase in buyer demand across England and Northern Ireland. All things considered, here at Nova Financial we felt that the budget was very positive for the property market, and this data certainly supports that.
Data from Zoopla shows that demand in general is up 13% year to date vs 2020. However, supply is down 13%, putting even more upwards pressure on prices. With 95% mortgages becoming available as of April 1st, more pressure will be put on the supply/demand imbalance by first time buyers as this specific demographic do not have homes to sell themselves. Furthermore, with the stamp duty holiday extending until September, all signs point towards more upwards price movement, especially in the North where markets “are well positioned to take advantage of tapered stamp duty extension as 70% of available supply is priced up to £250,000”.
To conclude, the report expects “continued upwards pressure on pricing in the North and Midlands as demand, which we had expected to be sustained even if the stamp duty holiday ended, is now further encouraged by the continued savings on offer.”