Yorkshire Post - Property

Market is set to cool off later in the year

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The new supply of homes for sale continues to edge up as pandemicle­d reasons to move provide momentum, and as some sellers look to take advantage of the house price gains over the last two years, according to Zoopla’s latest house price index.

The portal’s researcher­s believe that this is likely to continue in the coming months as price growth and high demand triggers more moves.

However, the rise in new supply has not been enough to offset high levels of activity, so total stock levels remain constraine­d, which has continued to put upwards pressure on pricing. As a result, price growth in the UK over the last year was up from 11.8 per cent in Wales to 3.2 per cent in London.

Yorkshire saw a 8.7 per cent rise, the North West recorded a 9.4 per cent uplift and the North East a 7.5 per cent gain.

Zoopla’s city index saw

Liverpool lead annual price growth with a 10.3 per cent. Nottingham follows, registerin­g 9.5 per cent annual growth.

Leeds saw a 8.5 per cent gain and Sheffield 8.7 per cent.

Affordabil­ity levels are a key factor in the spread of price growth across the country. The largest price growth has been registered in markets with highest demand and lower average prices.

In London, the average house price is nearly 11 times the average income. This compares to the North of England, where the average house price is 5.1 times average earnings.

Zoopla says that the current window of strong buyer demand will lead to higher levels of activity in the short-term.

However, it expects the economic headwinds, including the rising cost of living, higher mortgage rates and global uncertaint­y, to act as a brake on house price growth and predicts it will ease to more sustainabl­e levels over 2022, marking a return to pre-pandemic transactio­ns levels.

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