Lockdown restrictions meant we’ve spent much more time at home over the last year or so, and the UK’s priorities for what we want in a home have shifted. Housing market experts expect the trend of homebuyers seeking bigger and greener spaces will last well into 2022, which is increasing prices.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
According to Zoopla, the average house price rose by 7.3% over the last year, hitting a new high of an average £230,700 – a whopping 30% above the market peak in 2007.
Source: Zoopla 27/07/21
What’s causing the surge?
The surge is partly due to supply not meeting demand, but the drive from hopeful homebuyers comes from wanting more space inside their house as well as outdoor space. This means homes have been more popular than flats, with demand doubling for the property type in the last year alone. While the increased demand for homes has created an accelerated price growth, flat prices are still up 1.4%.
The desire for bigger spaces with outdoor options became prevalent during the first lockdown but various factors prevented many transactions from being completed. Now that restrictions have lifted and the government is doing as much as possible to stimulate housing market activity with the introduction of schemes, one might think demand might decrease, but it seems the experience of being locked down has changed people’s priorities permanently.
While not necessarily the case for frontline medical and dental professionals, many other professions have adapted to new ways of working, with companies allowing employees to work from home more, and extra or dedicated space for working has become a priority for many.
It’s not just property type preferences that have changed, but location as well.
With cities having been hit the hardest, many people are moving away and seeking greener pastures.
House prices in areas that feature homes with outdoor space like Wales and the North East have grown to 10.2% and 8.8%, respectively, while house price growth in London has only increased at 5.6% and flat prices in the area have actually fallen by 0.5%.
Source: BBC 27/07/21
What’s next for your property search?
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