- 27th April 2021
- Posted by: DMM
- Category: Property Market Reports
Between 1st January and 15th April this year, a collective £149bn have been transacted according to the latest house price index from Zoopla; a level not usually reached until the end of June! An astonishing one in 50 homes changed hands since the start of the year. The latest house price index from Zoopla also tells us that ‘The value of homes changing hands has nearly doubled in the first 15 weeks of this year compared with the same time period in 2020.’
The demand from buyers has hit new heights but Zoopla anticipate this to moderate as lockdown eases across the country. The high volume of sales is leading to stock levels down nearly 30% in April compared to the same period in 2017-2019. Annual house price growth has moderated to +4.0% in March with the strongest growth being in Wales (+5.9%) and Yorkshire and The Humber (at +5.3%).
Zoopla also highlights that price growth in London is lagging with 2% growth and is a reflection of its higher average home prices.
For new home developers this is pretty good news with Zoopla reporting demand for homes up 27.5% (YTD v 2020) and the number of sales agreed up 18.8%. With a net flow of new listings down -6.1% (YTD v 2020) the overall stock of new homes for sale is down -18.4%.
“The combination of home schooling ending, the stamp duty holiday extension, the ‘search for space’ and the return of first-time buyers created a surge in buyer demand” Gráinne Gilmore Head of Research, Zoopla.
“High levels of demand which are not being matched by supply will continue to support pricing…”
Latest House Price from Index from Zoopla
“House prices have been rising at an annual rate of 4% or more for five months, although March marks the slowest rate of growth October 2020. Price growth is down from 4.5% in January. High levels of demand which are not being matched by supply will continue to support pricing, but the annual rate of price growth will continue to ease as these extreme imbalances start to unwind. Zoopla’s house price index is stock-weighted, rather than transaction-based, so, in effect, it ‘looks through’ the increased sales of more expensive homes which has characterised the market since last summer.”
You can read the latest house price index from Zoopla here.