The total value of homes sold in the UK is expected to reach £ 461 billion this year, a jump of 46% from 2020, indicating that the current boom in the property market is likely to continue, according to a new forecast.
Real estate website Zoopla said its projections indicated that the real estate market in 2021 was on track to be the most active in 14 years.
Its numbers come on the back of data showing the industry has defied expectations over the past year to record double-digit price growth.
Last week, the Office for National Statistics said average UK house prices in March rose 10.2% in one year – the highest annual growth rate since August 2007, before the financial crisis does not strike.
The stronger-than-expected growth was fueled by a combination of factors, including the stamp duty holiday introduced last summer, new government guarantees for mortgages and the “space race” that many potential buyers prioritize properties with larger gardens and more space to work from home.
Zoopla – who says its figures are based on the largest sample of underlying data of any UK house price index – said its projections indicated home sales would hit 1.52 million in 2021 – a 45% increase from 2020. would mark the highest level of activity since 2007 and would mean that this year has been one of the 10 busiest years since 1959.
Meanwhile, the value of homes sold in 2021 is expected to reach £ 461 billion, the website said. This would represent a 46% increase, or £ 145bn in monetary terms, in 2020, when the figure stood at £ 316bn. This would represent a jump of 68% compared to 2019.
Demand for family homes is putting upward pressure on prices, and buyers’ interest remains the strongest far from London and the South East.
Zoopla said the ‘hottest’ housing markets – in terms of price growth and the time it takes to get a sale – were Wales, Yorkshire and the Humber, and the North West of England .
In the more central parts of London, by contrast, houses take almost two months to sell, two weeks more than the 2017-2019 average, while prices in central London are almost unchanged from the comparison. to a year ago.
Average prices fall in the City of London (down 2.5% year-on-year), Kensington and Chelsea (down 1.7%), Westminster (down 2 , 2%) and Hammersmith and Fulham (down 1.4%). These areas have been particularly affected by the global shutdown of international business and leisure travel due to the pandemic, Zoopla said.