Zoopla: Demand up 49%

The surge in demand has pushed house prices to an all-time high, with the average price of a home reaching £242,000 in December, up from £216,500 at the start of 2020.

Zoopla: Demand up 49%

Demand for property rose by 49% in December 2021 compared to the corresponding periods in 2018 through to 2021, according to the latest Zoopla house price index.

 

The surge in demand pushed house prices to an all-time high, with the average reaching £242,000 in December, up from £216,500 at the start of 2020.

Prices for houses - terraced, semi-detached and detached - averaged £289,500, while flats averaged £175,700, up 8.8% and 2.2% respectively year-on-year.

Property prices rose by 7.4% in the year to the end of December, with gains for houses continuing to significantly outstrip those of flats.

Across the regions, Wales led the way for the 11th consecutive month, with property values rising by 11.3%, followed by the North West at 9.2% and the South West at 9.1%.

London continued to lag, posting increases of just 2.6%, although a third of the capital’s boroughs saw price growth of more than 4%.

Gráinne Gilmore, head of research at Zoopla, said: “The pandemic ‘search for space’ continues, pushing demand for houses to record highs.

"Demand is also rising sharply for flats, with international demand, relative affordability and workers flowing back into cities all combining to energise this market.”

Emma Cox, sales director at Shawbrook Bank, said: “Locking in a competitive, fixed rate, mortgage may never have been a smarter decision than now.

"Demand for housing continues to be skewed and is testing even the most ambitious of buyers.

"Bidding wars, cash buyers and foreign investment are dominating a market that already had its fair share of challenges.

"In fact, the current reality makes the government’s Levelling Up agenda even more important.

“This interminable demand does fall in favour of landlords and property investors.

"If they are in a position to add to their portfolio in the newest hotspots, acting now ahead of any further interest rate rises is wise.

"However, before putting in an offer, landlords should have a clear understanding of a property’s current Energy Efficiency, especially if it falls below a C rating, in order to comply with the latest proposed legislation on new tenancies from 2025.”

Chris Hutchinson, chief executive of Canopy, added: “The continuous house price growth is showing no signs of slowing down as they have once again risen.

"At a time where the cost of living is increasing, potential homeowners are faced with a real challenge to raise the necessary funds for a deposit and be in a strong enough financial position to pass affordability checks for a mortgage, even with some attractive low-deposit deals around.

“The government and housing industry must work together to improve people’s financial wellness and stability throughout their renting journey.

"Competition in the market is fierce with demand far out-weighing supply, so the importance of having an edge when looking to secure an affordable mortgage cannot be underestimated.

"For any renter whose end goal is homeownership, now is the time to start building a strong credit score and financial resilience.”