UK house prices closed at a four-year high in 2020!
2020 has been a challenging year with the start of the pandemic and saw the first of several national lockdowns we have seen in recent times. However, the property market is still thriving, even after it was closed during the first lockdown.
With more people reviewing their living situation after the first lockdown, it has meant that more people are looking to buy a property than available properties in the market. This is driving property prices up, buyer demand vs available properties equates to higher property prices.
The UK's average property price has reached a four-year high, with the average property worth £223,700. The average property price rise across the country stands at 4.3%, the highest since April 2017.
This momentum is being fuelled by many factors including buyer demand vs available properties, the stamp duty payment holiday and the end of the first Help To Buy Scheme which is available to everyone matching the criteria and who can purchase an existing or a new-build home.
The new Help To Buy Scheme replaces the current one in April 2021 and has been receiving applications since December 2020. However, the new scheme is only available for first-time buyers who can only purchase new-build homes.
Although house prices are reaching an all-time high and with strong buyer demand, there is still a shortage of properties in the market for sale. It's estimated that the third national lockdown is putting off some sellers from listing their properties for sale.
January 2021 saw 12% less stock in comparison to last year. If you compare the previous two quarters of 2020 compared to 2019, there is a considerable difference in properties coming into the market, creating the stock shortage we are currently facing.
With the shortage of properties in the market, buyer demand was 13% higher in the three weeks between Boxing Day and January 17th compared to the same period a year ago.
The UK Parliament could not confirm on February 2nd if the stamp duty holiday would be extended further into the new fiscal year. Jesse Norman added that market and buyer consensus would be considered.
We estimate that the property market will remain strong for the foreseeable future. If you are looking to buy or sell your home, speak with one of our property experts today by calling us on 0116 266 9977.
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