The UK is readying itself to record the busiest housing market since 2007 as the pandemic has made homeowners reconsider their living situations.
Keen interest from buyers has sent house prices soaring, with the average value of a home now £240k, according to Zoopla’s House Price Index.
The pandemic has compelled many to reconsider where they’re based while competition for homes heats up amid dampened stock levels.
The number of houses for sale is down more than 50 per cent while the stock of new homes for sale was down more than 40 per cent on the five year average.
One in 16 homes changed hands in 2021, Zoopla’s experts said.
Grainne Gilmore, Zoopla’s head of research, said supply would start to rise in the new year as households use the holiday period to make tough decisions about moving.
“Buyer demand will remain strong moving into next year, but as the market starts to normalise in 2022, there may be an increase in the proportion of activity among movers, who are active in the market as sellers as well as buyers. This should ease the constraint in supply to some extent,” she explained.
House prices have shot up from £200,000 five years ago, with the annual rate of growth for all homes now 6.9 per cent. This is an increase on 3.5 per cent growth in October 2020.
However, growth has eased slightly since the 7 per cent growth recorded in August and September, following a stamp duty holiday-inspired frenzy.
Price growth in the capital lags behind that for homes elsewhere. Wales has registered the highest rate of growth for the eighth consecutive month at 10.8 per cent, followed by the North West of England at 9 per cent. London marked a subdued growth of 2.3 per cent.