Housing Market Update: August 2021
Activity in the housing market continues! As we head into August, we are still experiencing heightened consumer confidence, low mortgage rates, an increase in the availability of high loan-to-value mortgage products and the demand of properties from first time buyers.
The first half of 2021 has proved the busiest EVER recorded in the housing market with over 880,000 properties changing hands. Nearly 200,000 sales took place in June prior to the stamp duty deadline, over twice the June average from 2011 through to 2019 and the highest monthly total EVER recorded.
We have found here at Alexanders that buyer enquiries remain popular and the market remains extremely buoyant. Low level of stock continue to make house prices sky rocket.
With the success of the vaccine rollout, the reopening of selective travel corridors and the removal of the final COVID-19 restrictions, it is unsurprising consumer confidence is on an upward trajectory!
Although inflation has breached the government’s 2% target, there is little suggestion that interest rates will rise soon; mortgage rates remain close to their all-time low and affordability is on par with longer term averages. The increased availability in recent months of high loan-to-value mortgage products, thanks to the government-backed guarantee, provides support for both those looking to upsize and make lifestyle changes, and those looking to purchase their first home. Zoopla reports lending to first-time buyers has risen 25% year-on-year.
The latest monthly index produced by Nationwide reports that the average price of a property in the UK rose by 10.5% in the year to July. With lifestyle changes and a search for space still fuelling many buying decisions, the supply/demand imbalance has been most acute for larger homes with four or more bedrooms, which has led to such properties witnessing the strongest levels of price growth.
Rightmove reported a 39% surge in 4+ bedroom sales versus a 15% fall in stock coming to the market in the first half of 2021, compared to 2019. In the prime market, average prices have risen by 11%. Double-digit price growth is evident across all prime market regions of the UK except London. Price growth is currently strongest in the sought-after South West and North West.
Housing market activity is expected to remain buoyant over the summer months and into September so why not see how much your house is worth? It is not just the sales market that is buoyant, with people now working from home full-time, the demand for a home office and garden has become essential to some tenants.
Get in touch today to see if we can help you sell or let your home.
01970 636 000.
info@alexanders-online.co.uk
Take care,
The Alexanders Team.