Despite the current national lockdown, the momentum that built up in the housing market in the second half of 2020 has rolled into the first weeks of this year.
According to the latest House Price Index from Zoopla, house prices have reached an almost four-year high. As we near the end of January, buyer appetite is gathering pace and shows no signs of slowing.
House price growth currently stands at 4.3% – the highest level since April 2017 with the largest rises seen from the North where property is more affordable. In these regions, prices are rising between 3.8% and 5.4% a year with Scotland currently showing 3.7% growth.
Despite the current national lockdown, demand for property to purchase was 13% higher between December 26th and January 17th compared to the same period last year. In addition, new sales agreed were 8% higher.
With more time spent at home, there is still a re-evaluation of priorities taking place as people consider what they really want and need from their homes. What’s more, with rising house prices people have greater equity in their homes giving people the capital to move home.
The current demand for homes, lack of supply and an increase in sales agreed means that the number of homes for sale is 6% lower than this time last year. With a lack of choice of homes on the market, competition is higher which is keeping an upward pressure on house prices.