Research shows that the UK’s property sales surge would reach levels not seen since before 2007’s credit crisis.
According to Zoopla’s latest price index, property sales are on the right path to reach the market peak that was last seen back in 2007.
In a rising property market that’s driven by the stamp duty break, it’s projected that 473,000 more transactions will be processed in 2021 as compared to 2020, lifting the sales total value to a whopping £461billion.
Although the overall number of completed transactions in 2020 was affected by the market closures during covid-19 lockdowns, the average yearly transactions over the past few years has rarely exceeded £1.2 million.
Property sales of about £1.5 million mark 2021 as one of the most active markets. With the covid-19 pandemic ravaging the UK in 2020, it would have been hard to imagine the property market would take such a drastic turn in fortunes even after it had closed for a few months at the beginning of the coronavirus crisis.
Luckily, government interventions like extended stamp duty break plus the reintroduction of 95% mortgages, this has rejuvenated the property market.
It’s expected that the value of properties sold this year would reach £461billion, a 46% increase and 68% increase compared to 2020 and 2019 respectively.
Although the increased market activity is fueling the value of sales, more high-end homes are currently being sold as more people continue looking for extra space.
When it comes to the regional level, there has been increased market activity in the northwest, the Humber, Yorkshire, and Wales.
The time between property listing and selling subject to a contract in the above-mentioned areas is down between 10 – 15 days than the 2017 – 2019 average. Also, these regions have recorded the highest price growth.
At the city level, homes in Burnley, Barnsley, and wigan are selling much faster. A standard property in these areas is selling 3 weeks faster than in 2017 – 2019. Also, the yearly price growth has risen above average in these areas at 5.8%.
Peachey, K. (2021, July 21). UK property sales at new record as boom peaks. BBC News. https://www.bbc.com/news/business-57914323
Hoppe, J. (2021, April 19). U.K. house prices at new high on record sales pace. MarketWatch. https://www.marketwatch.com/story/uk-house-prices-at-new-high-on-record-sales-pace-2021-04-19
Reuters. (2021, July 21). UK property sales hit record in June before tax break reduction. https://www.reuters.com/world/uk/uk-property-sales-hit-record-june-before-tax-break-reduction-2021-07-21/