A popular property portal has revealed that this year’s housing market is bound to be the busiest since 2007. One in 16 homes is expected to have a new owner by the end of 2021.
Over the past year, the average cost of a property in the UK has increased by £15,500, while the South East and South West have seen prices go up by more than £22,000. To get a better understanding of the market and see the current property prices, you can check new homes for sale on https://korter.co.uk/ and find out what areas have the most and the least expensive real estate.
In addition, it appears that the annual rate of house price growth is 6.9%, while in October 2020 it was running at 3.5%.
Such a boost in the number of property transactions can be attributed to the re-evaluation of people’s priorities, caused by the Covid pandemic, as well as the effect of the stamp duty holiday, introduced by the government in July 2020.
The official records show that, after the end of the stamp duty holiday, the number of house sales dropped by more than a half. Meanwhile, in September, there was a deluge of homebuyers trying to make a purchase in the nick of time, before the stamp duty holiday deadline, resulting in a huge difference between the numbers in September and October.
Earlier in the year, there was another rise in transactions across the UK, caused by government guarantees for mortgages and the shift in homebuyers’ priorities, prompted by the pandemic. After being confined within the four walls for so long, people seem to have realised that a perfect house should have a big backyard, preferably with a garden, and plenty of space to make a comfortable home office, resulting in the so-called “race for space”. However, some have recently detected signs that this trend might be fading. Although others argue that there may be another reason why the recent records demonstrate demand shifting towards flats rather than houses.
The stock of new homes for sale has dropped by more than 40% compared to the five-year average. Meanwhile, the number of houses for sale has plummeted by more than a half, while the number of flats has decreased by 15%.
Overall, the demand has increased by 28%. Some predict that the new supply will begin to make up for it in January with the market normalising in 2022.
At the same time, others presume that, due to rising interest rates and inflation, the market may begin to struggle.