UK House Price Update
The average house price in the UK jumped by 1.1% in March to a record high of £254,606, as government measures to support the market continued to drive interest from buyers.
Halifax said that across the UK, property values were 6.5% higher than in March 2020. This means the average price is around £15,000 higher than it was since the start of the national COVID-19 lockdowns.
Russell Galley, the managing director of Halifax, said
‘’Casting our minds back 12 months, few could have predicted quite how well the housing market would ride out the impact of the pandemic so far, let alone post growth of more than £1,000 per month on average.’’
The extension of the stamp duty holiday and the newly launched mortgage guarantee scheme has provided many the opportunity to gain a foot on to the property ladder or meet the need for more space.
‘’ Overall, we expect elevated levels of activity to be maintained in the coming months, with consumer confidence spurred on by the successful vaccine rollout, and buyer demand still fuelled by a desire for larger properties and more outdoor space, as work-life priorities have shifted during the pandemic.’’
Rightmove data shows there is a surging level of demand in the UK housing market, making for one of the strongest starts to the spring season.
The number of potential buyers enquiring about each available property is at a record and is 34% higher than the same period a year ago, which was itself an active market before the first lockdown. With sales already agreed for almost two out of three properties on agents’ books, buyers eagerly await fresh choice coming to market making it one of the best sellers’ market of the past 10 years.
A recent report undertaken by Savills March 2021 suggests that an average UK Price growth of 20% is sustainable over the next five years without unduly depleting mortgage affordability. Indeed, for the North West, the residential prime capital values forecast looks particularly strong showing a 28.8% increase up to 2025.
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