The Covid-19 pandemic has had a significant impact on the UK property market, with buyers unable to see a potential new home during closings to the ‘space race’ for a new home during periods market opening.
And one of the results of this market shift is revealed in the latest figures released by the online real estate portal Zoopla, indicating that one in 16 privately owned homes has now changed hands in 2021.
Zoopla’s House Price Index predicts 2021 will be the UK’s busiest property market since 2007 in terms of real estate transactions.
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This fast moving and heated market has pushed the average UK home value 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 of UK’s top real estate sites.
Zoopla says that regionally, according to their latest figures, Wales continued their eight-month streak of recording the highest rate of monthly growth in house prices, up 10.8%.
In November, the Office of National Statistics (ONS) reported that the annual change in property prices in Wales rose 15.4% from September 2020 to September 2021. For more information, click 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, together with buyers’ desire to move out of more urban areas, demand has increased to a level where the offer cannot follow. , causing a shortage of homes for sale, pushing up prices.
Rural and coastal areas of Wales in particular continue to feel the impact of increasing demand and decreasing supply of inventory, leading many sellers to find a buyer very quickly and most properties sell for at or above the asking price.
Rob Fearnley, local real estate partner at Purplebricks, says: “Property prices in the Mid Wales region have continued to rise, due to a lack of properties on the market. This continues to be a problem and has created a very competitive market for buyers. to compete. “
James Thomas, of the Cardiff branch of Savills estate agents, said: “Since the first foreclosure the property market has been incredibly busy across the UK, mainly due to a shift in the priorities of buyers, to which lifestyle is now the most important factor.
“Looking ahead, we expect less urgency in the market starting next year, but there is no indication that demand will drop.”
Savills calculated a five-year forecast for house prices in Wales which projects a five-year (2022 to 2026) increase of 18.2%.
This equates to an increase in the national average for Wales from currently £ 215,000 to £ 251,662, according to the estate agency.
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Grainne Gilmore, head of research at Zoopla, said that at the UK level the new supply will start to increase at the start of the year as households take advantage of the holiday period to make a decision about their move.
She says: “In typical years, the very seasonal supply of homes for sale slows down as Christmas approaches, but increases sharply in the New Year.
“On average, the ad supply at the end of January is around 50% higher than at the beginning of December.
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“Demand from buyers will remain strong next year, but as the market begins to normalize in 2022, there may be an increase in the proportion of activity among movers, who are active in the market as sellers. and buyers This should ease the supply constraint to some extent.
“Other factors that will affect prices next year include looming economic headwinds in the form of higher inflation – which will push household costs up.
“Even with a few interest rate hikes, mortgage rates are likely to remain relatively low relative to long-term averages, and there is more room for price growth in some of the more affordable housing markets.”
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