Demand for homes in London has risen 14 per cent over the last month as Brits rush back to the office.
Prospective Londoners appear keener to purchase homes rather than flats, with homes marking an increased demand of 25 per cent compared to a six per cent boost for flats.
Average UK house prices have hit a record high of £235,000, according to property platform Zoopla’s monthly House Price Index.
Record prices follow average daily price increases of £44 over the past six months – an acceleration from an average of £30 per day over the previous six months
The ending of the tapered stamp duty holiday has hardly dented buyer demand, which continues to be higher than typical levels for this time of year.
Home buyers are keen to look for properties with lots of space and greenery, either with gardens or areas near parks while also prioritising a speedy commute to the office.
Average annual house price growth rose 6.1 per cent in August, more than double the rate of growth recorded 12 months previously.
London reported the lowest rate of growth in prices, up just 2.2 per cent. The city lagged 7.6 percentage points behind Wales, which recorded the fastest growth, one of the widest gaps seen in the last three years.
More landlords were putting properties on the sales market, Zoopla said. The proportion of homes listed for sale that were previously available for rent has risen to 8 per cent across the UK, hitting 13 per cent in London.
The end of government support in the form of the Coronavirus Job Retention Scheme is expected to have an impact on market sentiment in the fourth quarter, according to Gráinne Gilmore, head of research, Zoopla, said.
She added: “We expect the market to remain busy compared to historical norms, and for price growth to remain in firmly positive territory at the end of the year, although lower than current levels of +6.1 per cent.
“Stock levels will start to rebuild in early 2022 as market activity returns to more normal levels.”
Gilmore explained: “Typically we are seeing the highest house price growth in the most affordable regions of the country. London prices have also been affected by affected by lack of international travel. As a global city, London will benefit as overseas travel becomes easier.”
Cory Askew, head of sales at estate agency Chestertons, said: “The autumn market has well and truly swung into life, particularly in Prime Central London, where the easing of international travel restrictions is clearly improving buyer activity levels.
“This contradicts August’s reputation of being a quieter month for property sales and is yet another testament to the fact that the market is witnessing unprecedented times. We are now seeing a wave of cash-rich buyers who sold their homes during the pandemic and have lived in rental accommodation as well as buyers wanting to take advantage of recently introduced mortgage packages.”