Buyer demand up 50% compared to usual levels for this time of year
Demand for houses and flats reached an all-time high in the first weeks of 2022 and supply remains low, Zoopla reports.
Buyer demand is up 50% compared to usual levels for this time of year, says the latest House Price Index report from Zoopla, just published.
Demand is up for all property types, including houses and flats.
A number of factors combined last year to drive demand for family homes. These included the ‘search for space’ caused by the Covid pandemic, the stamp duty holiday, and also the change in working patterns of office-based workers.
The flats market is also seeing an increase in demand, Zoopla reports.
Zoopla reports that average UK house prices increased by 1% in the three months to December 2021, taking the rate of annual growth to 7.4% which is down from 7.7% in September. The value of an average home stands at £242,000, an increase of £17,000 in 2021.
There has been a lack of supply of homes for sale coming to the market for some time. The scale of activity in the UK housing market, with 1.5 million sales last year; the highest number of transactions in any year prior to the financial crisis, has resulted in eroded supply. There has also been increased demand from first-time buyers and investors.
Zoopla reports that “there is still a significant imbalance between supply and demand”.
It reports: “Looking at stock levels against a five-year average, they are -44% lower. However, this marks a slight turn-around from late in 2021, when stock levels were down -47%.”
Looking ahead, Zoopla reports: “There is still a significant imbalance between demand for homes and the supply of homes for sale which will continue to put upwards pressure on prices.”
It expects home values to rise by an average of 3% this year. It also forecasts 1.2 million transactions, down from 1.5 million last year, but in line with the average number of transactions over the last five years.
If you want to move and benefit from the strong market, get your house valued and listed now.
Book a valuation now with Preston Baker and find out how much your house is worth.
