According to the latest figures from Zoopla, the lack of supply and increasing demand for homes has resulted in the fastest-moving property market in five years.
The latest Zoopla House Price Index released on June 30 shows that house prices have risen by more than £10,000 over the last 12 months as buyers have re-evaluated their living situation.
This increase is the biggest jump in value since October 2016 and as a result over 1.8m properties have been pushed into a higher stamp duty bracket. Due to this unprecedented demand, the average time it takes to sell a home has halved to just 22 days compared to 42 days in May 2019.
In Scotland, house prices have risen by 3% in Glasgow and 2.9% in Edinburgh. The average annual house price growth was 4.7% in May, this is over double the rise of 2.2% in May last year. House prices are rising the fastest in affordable markets.
In terms of buyer demand, this is currently 55% higher than pre-pandemic levels in 2019.
Demand for property – especially family homes – has been driven by a combination of factors. First, the pandemic resulted in a once-in-a-generation re-evaluation of buyer priorities with a quest for more internal and external space. Second, the stamp duty holiday gave the property market a huge boost. Third, we have seen greater availability of high LTV mortgages for all buyers with the introduction of the Mortgage Guarantee Scheme.
In addition, first-time buyers have flocked to the housing market and as they are purchasing a home without having one to sell, they are not replenishing stock levels.
The supply of homes for sale is not keeping pace with demand and as a result, buyers are experiencing high levels of competition for available homes.
In order to get ahead of the game, make sure everything is in order, including a mortgage agreement in principle. As a whole of market broker we will guide you through the full buying process to ensure our clients are in a position to start viewing properties to buy.
For those thinking of selling, now is the ideal time to sell – but it’s worth remembering that at present, it could take longer to find a home due to the current shortage of listings. Again, we would recommend taking advice from ourselves on the process of selling and buying so we can guide you on the best way to do this.
Talk to us at The Mortgage Hub if you are considering your next move and would like advice on securing the right mortgage for your circumstances.