2021 – What has happened to the UK property market this year?
And what can we expect to happen in the future?
Well, it has been an eventful year hasn’t it!
No matter where we reside across the globe, the ongoing pandemic has seen all of us have to adapt to a new way of living.
However, and also no matter where we reside, the UK property market has proven once more to be a “go to” environment for investors and it’s resilience and established stability continues to breed confidence.
Let’s have a look at some of the key facts and figures this year:
- Annual UK price increase of 13.4%. The highest increase since 2008
- The North-West saw an increase of 14.5%
- West Midlands witnessed an increase of 15.4%
- The South-West received the highest increase of 16.6%
- Scotland the weakest region but have still seen growth of an impressive 7%
22 days – what is significant about this period of time?
It’s the average time a property takes to sell in the UK. As a guide, back in May 2019, the average was 42 days.
Are you looking for UK Property Advice?
Supply vs demand
Supply vs demand is the age-old adage and it continues to be highly prevalent as homes available for purchase in the first six months of the year are 24% lower than in 2020. Zoopla reports the market as the fastest moving period for five years.
Average UK rental amounts have increased by 1.2%.
The East Midlands saw the highest increase of 2.4%
London saw rents drop by just 0.1% to record the lowest figures.
As of May 2021, average mortgage approvals were over 34% higher than the 2014-2019 averages.
And the future?
With the Stamp Duty holiday coming to an end, transactions are expected to reduce although only 4% of existing purchasers have indicated they will not proceed, should they miss the deadline.
Longer term, the lack of supply to satisfy demand has seen positive growth predictions across the board with Savills predictions illustrated below: