It’s All About Supply And Demand
Zoopla’s latest report for the UK property Market shows the demand for homes have rebounded since the summer. However, this third lockdown appears to be stalling new listings. This means that there’s now an even wider gap between UK property supply and demand.
UK Property Market – Supply and Demand
There’s been +13% greater demand for homes in the first 2 weeks of 2021 and an 8% increase in sales compared to the same 2 weeks in 2020.
However, this third lockdown appears to be putting potential sellers off from listing their home. This means that there are -6% less properties on the market than there were this time last year.
UK Property Prices + 4.3%
This gap in supply and demand means that the growth in house prices is now the highest since April 2017 at +4.3%. The average house price in the UK now stands at £223,700.
What to expect in Quarter 2?
The stamp duty holiday has clearly been a major factor in the current high demand. So it will be interesting to see if this trend continues as the March deadline looms.
There is a lot of pressure on the government to extend the stamp duty holiday. The hope is that its extended long enough for the sales agreed in 2020 to have the chance to complete. However, this would be best case scenario. Its unlikely the government will extend the stamp duty holiday by more than a few weeks.
The signs are that for quarter 2 there will be a redress in the balance of UK property supply and demand. This means that its likely to be a period of lower growth and maybe a slight reduction in house prices.
This is a quick overview of the UK property market latest trends. In the next few days I’ll drill down further, to see if and how this might affect the Hayle area more specifically.
About the Author
Hi, I’m Deborah and I’m one of the directors of CAM Residential Lettings in Hayle and this blog is a bit of a hobby of mine.
I love all things to do with the UK property market (useful considering the industry I’m in!). My articles are mainly about Hayle, Penzance and St Ives. However, from time to time I’ll give you a quick update about UK property market overall and I’ll also highlight what in my view, are great local investment opportunities.
So please subscribe if you’d like to be kept up to date with the local property market.
Source: December 2020 – Zoopla index, published 27th January 2021