House prices: The three UK regions where house prices are rising fastest
Property expert outlines the UK hotspots on the housing market
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Pent up demand triggered by the UK’s lockdowns has led to the busiest housing market for more than a decade. As Brits scramble to buy homes, Express.co.uk looks at the regions experiencing the fastest house price increases.
A staggering one in every 16 homes is due to be sold to new owners this year, according to Zoopla, making this year the busiest for the housing market since 2007.
The average home in the UK now costs £240,000, compared with £200,000 just five years ago.
This huge surge has priced many first time buyers out of the market. But despite the price rise, buyer demand remains high due to a lack of housing stock.
Buyer demand is running 28 percent above the five-year average, but the number of properties on the market is down 42 percent, compared with this average.
It seems the price surge shows no sign of slowing, as house prices rose at an annual rate of 6.9 percent in October, double the rate of 3.5 percent recorded in the same month of 2020.
Over the past year alone the average house has seen £15,500 added to its value. Zoopla attributes this rise in part to buyers wanting bigger homes, especially further out of the cities.
Which regions have seen the fastest price growth?
Although the whole of the UK has seen house prices surge throughout the pandemic, certain regions have skyrocketed far higher than others.
According to Zoopla’s House Price Index, Wales has seen the largest price growth.
Quarterly house prices in Wales leapt by 4.3 percent in July 2021.
The region with the second-highest growth was the North West at 3.6 percent.
The South West closely follows this, with a quarterly growth of 3.5 percent.
Although prices in London have stayed at their eye-watering highs, its growth when compared to other regions has been small.
In July 2021, price growth in London was just 1.1 percent.
It seems the pandemic has caused Britons to crave the extra space afforded further outside of the capital.
What will happen to the housing market in 2022?
According to its research, Zoopla forecasts that buyer demand will remain strong going into 2022.
But it expects new supply to come onto the market, as homeowners typically use the Christmas period to make a decision about moving.
The supply shortage is also expected to ease as the proportion of buyers who are also selling their former homes is expected to increase.
Grainne Gilmore, head of research at Zoopla, said: “In typical years, the highly seasonal supply of homes being listed for sale slows in the run-up to Christmas, but rises sharply in the new year.
“On average, the supply of listings at the end of January runs some 50 percent higher than the start of December.
“Even with some interest-rate rises, mortgage rates are likely to remain relatively low compared to long-run averages, and there is more room for price growth across some of the most affordable housing markets.”
Overall Zoopla expects house prices to rise by three percent next year, and it forecasts a slump in the number of properties changing hands from an estimated 1.5 million this year to 1.2 million in 2022.
Source: Read Full Article