2021 set to see a surge in sales
THE Covid-19 pandemic has had a significant impact on the UK property market, from buyers not being able to view a potential new home during lockdowns to the ‘race for space’ hunting for a new home during the periods when the market was open.
And one of the results of this change in the market is revealed in the latest figures to be released by online property portal Zoopla, indicating that one in 16 houses in private ownership have now changed hands in 2021.
Zoopla’s House Price Index goes on to forecast that 2021 is set to be the UK’s busiest property market since 2007 in terms of property transactions.
This quick moving and heated market has boosted the UK average value of a home to £240,000, up from £200,000 five years ago according to Zoopla. In Wales the website reports a current average value of £215,994.
And Wales continues to top the list as the hottest property spot in the UK.
Zoopla states that at a regional level, according to their latest figures, Wales has continued its eight-month run of registering the highest rate of month-on-month house price growth, up at 10.8%.
In November, the Office of National Statistics (ONS) reported that the annual, year-on-year price change of a property in Wales has risen by 15.4% from September 2020 to September 2021. Find out more about that here.
According to many Welsh estate agents and property experts, large pockets of Wales still have an average house price below the UK average and, coupled with buyers’ desire to leave more urban areas, has meant demand has increased at a level where supply cannot keep up, leading to a shortage of homes for sale, so pushing prices up.
Rural and coastal areas of Wales, in particular, continue to feel the impact of increasing demand and decreasing stock supply, leading to many sellers securing a buyer very quickly and most properties selling for on or above the asking price.
Rob Fearnley, local property partner at Purplebricks, said: “Properties in the mid Wales region have continued to increase in price, due to a lack of properties on the market. This continues to be an issue and has created a very competitive market for buyers to compete in.”
James Thomas, from the Cardiff branch of estate agents Savills, said: “Since the first lockdown the property market has been incredibly busy across the UK, driven largely by a shift in the priorities of buyers, to who lifestyle is now the all-important factor.
“Looking ahead, we are expecting less urgency in the market from next year, but there is no sign that demand will drop.”
Savills has calculated a five-year forecast of house prices in Wales that predicts a five year increase (2022 to 2026) of 18.2%.
That equates to an uplift of Wales’ national average from £215,000 currently to £251,662, according to the estate agency.
Grainne Gilmore, head of research at Zoopla, said: “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% higher than the start of December.
“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 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.”