Attributed to an enormous spike of post-lockdown activity, house price growth across the UK is now averaging 3%, its highest in two and a half years. Many areas are experiencing record-high sales and property purchase queries as the market bounces back from one of its most turbulent years in recent history.
As it stands, cities in the north of England are seeing the strongest average house price growth of all. Zoopla has reported a huge 5.1% increase in average house prices in Nottingham. Manchester followed closely behind with an impressive 4.6% increase, followed by Leeds, where average house prices have climbed by 4.5%.
More importantly, Zoopla predicts that this growth will continue for the next few months at least, potentially pushing the overall average increase to 4% before the year ends.
Sales activity spikes in the south-east
Though the fastest house price increases have been recorded in the north, London and the south-east of England have recorded the biggest increases in property sales volumes.
According to Zoopla, agreed property sales in the South East for the year to date are up 15%, in contrast to the 3% average across the UK. London has also seen a huge spike in agreed property sales, up an impressive 12% year to date.
“Last year, sales volumes in southern regions were 20% lower than in 2015, which is why the rebound in demand has boosted sales so much in southern England,” Zoopla said.
Zoopla’s report also indicated that more properties are currently on the market than at the same time last year, with 18% more inventory than was available in October 2019. In addition, the average asking price for a property for sale today is around 10% higher than it was a year ago.
London has seen a wave of new inventory become available for prospective buyers, with a full 39% more homes available for purchase than at the same time in 2019.
Speaking on behalf of estate agency Jackson-Stops, Nick Leeming commented on the market’s impressive performance in the south-east of England.
“This certainly reflects what we’re seeing on the ground, with sales agreed last month among the highest on record across the Jackson-Stops network,” he said.
“Whilst there has been a notable uptick in activity across every branch, this has been particularly prevalent in the South East, with Chichester and Dorking featuring amongst the locations that saw the highest volume of new offers on properties.”
Ongoing uncertainty
Representatives from Zoopla commenting on the data suggested that property market activity across the country has become restricted because of ongoing coronavirus-related economic uncertainty.
In less affluent areas of the UK, prospective buyers are demonstrating a reluctance to commit to major purchase decisions. Whereas in communities where buyers are less dependent on conventional home loans, property sales are once again surging.
Again, this is a trend that Zoopla expects to continue for some time, particularly as the second wave of the COVID-19 crisis strengthens its grip on the UK and its economy.