Here’s how the surge in popularity for houses could impact you.
- UK house prices increased by 10.0% in the year to May 2021
- The (RICS) May 2021 reported that increasing demand and a decrease of new instructions continue to drive house prices higher.
- The average cost of a house has jumped by 7.3% during the past year, while the typical price of a flat has edged ahead by just 1.4%.
Demand for houses has more than doubled as buyers search for more space in the wake of continuous lockdowns. Family houses are the most desired type of property, with the number of buyers skyrocketing by 114% compared with levels observed during this time between 2017 and 2019. In the meantime, the demand for the flat has risen only by 34%, according to Zoopla’s latest House Price Index report.
Why is this happening?There are mainly two reasons why the demand for houses has been pumped. Firstly, the stamp duty holiday resulted in people being willing to spend their savings to add more to their property’s portfolio.
Secondly, the trend for working from home had a serious impact on re-assessments of lifestyles preferences where to live. If there is an opportunity to enjoy the sea near Dorset or enjoy Somerset, why would you even consider renting in the city? Just jump on the train to London and you saved yourself from enormous rent.
What could it mean for you?It might not be the best news for purchasers as you would have to face stiff competition, however, it might be well worth considering buying the flat. The cost of the flat has risen much more slowly than property values across the wider housing market during the past year. Although, prices vary according to regions in the UK with the highest percentage rise in Scotland, up to 6.3%.
On the other hand, if you are a first-time buyer, you may be ahead in the property chain, as there is no worry with selling the house/flat. Furthermore, there is governmental aid available to first-time purchasers.