Demand for UK Homes Up 29%

The latest Zoopla UK House Price Index brings us more news of strong demand for UK homes.  Zoopla report that UK house annual price growth was up 4.1% and demand for homes is up 29%.

The pressure on pricing is a result of YTD flow of new properties being listed is down 2% against 2020 and with completions forecast to reach 1.5 million, up from 1.04 million last year.

The demand for UK homes is forecast to bring £461 billion in sales, up 68% from 2019 and with total stock of property for sale down 20.8% in the year to mid-May when compared to the average last year.

As with the recent Rightmove report, Wales is showing the largest price growth at +6.3% and Yorkshire & Humber at +5.4%.  The news for London remains more downbeat with price growth at 1.9%, the lowest level since March last year.

“Buyer demand looks set to ease as the economy opens up but it will remain elevated compared to previous years, which we anticipate will create one of the busiest sales markets in more than a decade in 2021” Gráinne Gilmore Head of Research, Zoopla

Demand for UK Homes May Fall Back

Zoopla say that demand for UK homes has moderated since the peak in Q1 as we see the market opening up from lockdown.  But whilst demand may fall back, they expect continued ‘elevated’ conditions compared with more ‘normal market’ levels.

“While the introduction of the stamp duty holiday has certainly boosted activity, we believe the once-in-a-generation ‘reassessment of home’ has further to run, a view a member of the Bank of England’s MPC also shared in a speech last week.

The  easing of lockdowns will cause a natural fall in demand as people are able to see family and enjoy amenities that have been shut for more than a year, new buyer demand will still emerge throughout H2 as office-based workplaces confirm if they will be pursuing more flexible working practices. Households who have the opportunity to commute less frequently have more options when it comes to choosing where to live, and this could prompt a move.”

You can read the full Zoopla House Price Index here.

This ongoing demand for UK homes is good news for those trying sell their new homes and it is also likely to be maintained whilst new listing remain restrained.

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