High buyer demand is likely to result in the busiest housing market in almost 15 years, boosting the average value of a home to £240,000. Zoopla’s latest house price index said the property market has been redefined by the pandemic with many reevaluating their needs and what their homes can offer them. By the end of 2021, one in 16 homes will have changed owners.
Grainne Gilmore, Head of Research at Zoopla, said supply levels will increase at the beginning of next year after Christmas.
“New supply will start to rise at the turn of the year as households use the holiday period to make a decision around making a move.
“In typical years, the highly seasonal supply of homes being listed for sale slows in the run up to Christmas, but rises sharply in the new year.
“On average, the supply of listings at the end of January runs some 50 percent higher than the start of December.”
Other cities in the north such as Liverpool, Manchester and Sheffield also continue to show high rates of growth at 10.6 percent, 8.7 percent and 7.9 percent respectively.
Grainne said buyer demand will continue to be strong in 2022 as the market starts to return to pre-pandemic levels.
She said: “Buyer demand will remain strong moving into next year, but as the market starts to normalise in 2022, there may be an increase in the proportion of activity among movers, who are active in the market as sellers as well as buyers.
“This should ease the constraint in supply to some extent.
“Other factors that will affect prices next year include the looming economic headwinds in the shape of rising inflation – which will push household costs higher.
“Even with some interest-rate rises, mortgage rates are likely to remain relatively low compared to long-run averages, and there is more room for price growth across some of the most affordable housing markets.”