Residential property prices in the UK have increased to £245,200 as greater demand from buyers amid constrained stock levels continues to place upward pressure on prices.
According to the latest data from Zoopla, there was strong property price growth across all regions of the UK, with the average price of a home rising 8.1% on the year, up from 4.2% last February.
The property website said demand remains unseasonably strong across the country, with demand for family houses more than twice as high as usual for this time of the year.
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Gráinne Gilmore, head of research at Zoopla, said: “Demand is strongest for family houses, indicating a continued appetite for additional internal and external space. But demand is up across nearly all property types, indicating that those thinking of moving are in pole position to sell.”
Zoopla said new listings of homes for sale rose 5% above the five-year average, with listings for sale across the average estate agency branch up 3.5% in the 28 days to 20 March.
The stock of homes available to buy was 42% below the five-year average, compared to 47% lower in December last year.
But, despite new supply levels increasing this year, it will not be enough to reverse the overall supply-demand imbalance, Zoopla said.
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Sales agreed in the first quarter of this year jumped 38% compared to Q1 2020, according to Zoopla’s monthly house price index.
It expects the trend to contine in the coming months, as price growth and high demand triggers more homeowners to make a move.
Market activity is also being driven by a bounce back in demand in urban areas since the start of 2022.
At a regional level, Wales has registered the highest annual regional price growth for the 12th consecutive month, at 11.8%, while this has also contributed to 35% price growth over the last five years in the nation.
Despite this, Zoopla anticipates price growth to slow during the second half of 2022 as the surging cost of living, and rising mortgage rates apply a brake to the market.
Gilmore added: “Given the tick up in new listings of homes for sale, there is now a wider choice of homes for movers and all buyers. The increased economic headwinds, including the rising costs of living and increasing mortgage rates, property price growth will start to moderate as we move through the second half of 2022.”
By MARC DA SILVA
Source: Property Industry Eye
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