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Average House Prices Are Up

Saturday, August 01, 2020

The property market has been affected by lockdown, especially when it comes to the balance of housing supply and demand, according to the latest Zoopla House Price Index. Average house prices are up 2.7% on the year and sales activity has rebounded strongly post-lockdown.

You can download the full report at www.zoopla.co.uk but here is a summary of the main points as featured on their webiste. 

House price growth
The annual rate of growth edged up to 2.7% in June, after rising 0.2% on the month. Price growth is highly localised, but there is little evidence of material declines at regional or city levels, although a small proportion of local areas are seeing price declines of up to -0.2%.

Why are house prices increasing?
Buyer demand has risen strongly since housing markets reopened. Although the number of new homes being listed for sale has also risen, it hasn’t increased by the same margin. This creates an imbalance of low supply and high demand - and contributes to house price growth.

 

The stamp duty effect
The biggest change in the market spurred by the Chancellor’s announcement of a stamp duty holiday for England and Northern Ireland has been seen in London. Sales jumped by 27% in the weeks after the change. Given the higher average house prices in London and the South East, these are where the largest benefits from the stamp duty holiday will be felt. The stamp duty holiday will continue to support demand in these higher value markets.

Key takeaways from the report:

  • Average house prices up 2.7% on the year, after a 0.2% increase during June as post-lockdown momentum continues to support prices.
  • Sales activity has rebounded strongly post-lockdown, although the number of sales agreed in the year to date is still 20% lower than over the same period last year.
  • Stamp duty changes have delivered an immediate boost to sales levels in London.
  • Sales volumes for the year will be around 15% lower than 2019, a much improved outlook compared to a few months ago.

Article taken in part from www.zoopla.co.uk - to read the article in full why not visit their website where you will also find for handy guides and additional information or enrol on one of their web-chats to get up to the minute news about the property industry.

Important Information
All property sales and the financial advice that surrounds them are as unique as the people engaging in the transaction. It is important to not make a decision without seeking professional advice. If you want to sell your home and are considering redecorating before marketing, speak to one of our Property Professionals to get the best advice for presenting your home for sale before making any investment. This article is for the purpose of information only and should not be seen as financial advice.

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