“There is fierce competition for family homes in our area”: Demand from enthusiastic home seekers is driving home prices as there are few properties on the market.
- Average home prices rose 4.3% to £ 223,700 in the year to December, according to Zoopla.
- Prices are expected to continue rising as demand recovers but supply declines
- London is the only area where we have seen more properties on the market
- The lack of family-sized homes on the market hinders couples’ plans to move
Home price inflation hit a nearly four-year high in December, and the third blockade exacerbates the imbalance between supply and demand in real estate, which could continue to rise in the coming months. Report found.
Demand for homes is recovering rapidly, but supply is declining as sellers appear to be reluctant to list homes. Meanwhile, Covid’s restrictions have been applied and new listings are declining in all regions except London.
According to real estate portal Zoopla, average home prices in the UK rose 4.3% to £ 223,700 in the year to December, the highest since April 2017.
Rising: Home Prices Reached Nearly Four Years High in December
“The rising demand and shortage of new homes for sale will continue to put upward pressure on home prices in the short term, especially in the more affordable regions of the UK,” said Richard Donnel of Zupla.
Despite the new blockade, housing demand in the first two weeks of the year was 13% higher than in early 2020. This is also thanks to buyers who want to meet the stamp duty holiday deadline at the end of March.
However, new housing supplies plummeted 12% across the country during the same period, resulting in higher prices.
The only exception is London, where new homes for sale actually increased by 12 percent.
Zoopla said this was partly due to homeowners trying to move to big homes in the wake of a pandemic and investors trying to dispose of real estate because rents fell in the capital.
Studies suggest that the new stock in London consists primarily of apartments.
Meanwhile, Scotland saw the largest decline in new housing stock on the market, recording a 19% decline. In the northeast and southwest, both new listings fell by 14%.
Zoopla expects sellers to list homes again as Covid cases begin to decline sharply and the country returns to regional tier-based limits.
“There is fierce competition for family-sized homes.”
Lauren Joselin, 34, a PR consultant in Clapham, southern London, is soon hoping for her first baby and is looking for a larger home in East Sussex or West Sussex.
But she and her partner Tom Omahoney haven’t had much luck so far.
Longing for more space, they initially wanted to move before the first baby arrived at the end of March, but the lack of family-sized properties on the market has hampered the plan.
Lauren Joselin and her partner Tom Omahoney struggle to find a family home in East Sussex or West Sussex
“In our search area, there is fierce competition for family-friendly homes. We made an offer to senior management in the fall, but it was overpriced,” Lauren said.
“The closer we get to Christmas, the less likely it is to hit the market, and despite the New Year, the supply of new properties does not seem to be increasing.
“The lack of properties feels like a hallmark of the Covid market.”
And added: “I don’t think sellers want future buyers in their homes.”
The stamp duty holiday was an incentive, but now admits that it may not be possible to meet the deadline.
This is unfortunate, but they are reassured that they can move forward with their plans and no longer have to compete with time.
London was the only region to see an increase in new listings earlier this year
Demand surpassed Janary’s supply as new listings plummeted 12%
Which region has the greatest growth in 2020?
Looking at national prices, Wales and the northwest are the fastest growing regions, with prices in December rising 5.4% compared to the same month in 2019.
Yorkshire and Hamburg followed a 5.3% price inflation, followed by a 4.6% price increase in the East Midlands.
Liverpool recorded the fastest growth of any of the UK’s largest cities, with prices rising 6.3%.
Manchester has fallen behind with a 6% rise in prices, returning to the level of inflation last seen two years ago.
House prices are also rising in southern England, but the rise due to affordable pressure is limited.
Prices in London soared 3.1% in the year to December, well below the 20% annual growth recorded in the summer of 2014.
New listings decline during the blockade, but price increases reach their highest level in four years
https://www.dailymail.co.uk/money/mortgageshome/article-9188813/New-listings-fall-amid-lockdown-price-growth-hits-four-year-high.html?ns_mchannel=rss&ns_campaign=1490&ito=1490 New listings decline during the blockade, but price increases reach their highest level in four years