The property market in 2021 is set to be the busiest on track since 2007.
According to new data from Zoopla, this year is set to be the busiest in 14 years in terms of property transactions amid the stamp duty holiday and people searching for more space amid the pandemic.
“2021’s property market will be defined by the pandemic-led re-evaluation of the home, with many households compelled to make a move,” said Zoopla.
After 16 months of accelerating house price inflation, the average value of a UK home is now £240,000 – up from £200,000 five years ago. Over the past 12 months alone, average UK prices have risen by £15,500, with the South East and South West recording growth of more than £22,000, the property website found and shared in a report.
Grainne Gilmore, Head of Research,, Zoopla, comments: “New supply will start to rise at the turn of the year as households use the holiday period to make a decision around making a move.
“In typical years, the highly seasonal supply of homes being listed for sale slows in the run up to Christmas, but rises sharply in the new year. On average, the supply of listings at the end of January runs some 50% higher than the start of December.
“Buyer demand will remain strong moving into next year, but as the market starts to normalise in 2022, there may be an increase in the proportion of activity among movers, who are active in the market as sellers as well as buyers. This should ease the constraint in supply to some extent.
“Other factors that will affect prices next year include the looming economic headwinds in the shape of rising inflation – which will push household costs higher. Even with some interest-rate rises, mortgage rates are likely to remain relatively low compared to long-run averages, and there is more room for price growth across some of the most affordable housing markets.”
