Race for space continues

THE PROPERTY market is busier than ever, as buyers compete in the ‘race for the space’.

According to Zoopla, buyer demand for properties has grown by nearly 80% compared to the four-year average, following the spring budget.

Last month, Rishi Sunak, chancellor of the exchequer, included a stamp duty holiday extension and a mortgage guarantee scheme for firsttime buyers in his budget.

Now, Zoopla said the supply of new homes cannot keep up with the demand.

The property portal also found that on average, houses are selling three weeks faster than flats as buyers opt for more space.

It reported that demand for three-bed houses has also grown by 30%, and this is pushing prices up. The average value of a house in the UK has risen by 4.9% in the past year, compared to 1.9% growth for flats.

Gráinne Gilmore, head of research at Zoopla, said: “The search for space is driving continued demand for family homes, which means prices for houses are rising faster than flats, and houses are also selling more quickly.

“The prospects for the housing market over the next year have improved on the back of Budget. The continued search for space, the stamp duty extension and mortgage guarantees will support activity levels and headline house price growth.”

But Ms Gilmore said the pathway out of lockdown is unlikely to be simple or smooth.

“We still expect house price growth to moderate later in the year, but overall transactions are set to benefit from an additional boost following the stamp duty extension and tapering,” she added.