The supply of new homes for sale is still constrained, down 13% this year compared to the 2020 average
The recent Budget resulted in an 80% spike in buyer demand for property compared to the four year average, according to the latest findings by Zoopla.
The supply of new homes for sale is still constrained, down 13% this year compared to the 2020 average. However, the volume of homes for sale is expected to recover as the Covid vaccination programme gathers pace and Prime Minister’s Boris Johnson’s roadmap out of lockdown comes into effect.
Sales agreed are higher 5.3% compared to the same period in 2020, powered by demand, which in turn is expediting the speed at which sales are being agreed.
Zoopla’s data shows that the average time to sell a property in the UK has dropped by nearly a week across the country excluding London, down from 50 days in 2020 to 44 days now.
The North East and the North West have recorded the highest reduction in time to sell on a regional level, dropping by 17 days and 12 days respectively. At the same time, the North West and Yorkshire and the Humber are the fastest moving markets in the UK, with sales agreed on properties in an average of just 38 days from the point of listing.
Across England, Zoopla estimates that there are currently nearly 130,000 homes for sale that will attract no stamp duty until the end of September, equating to a potential stamp duty saving of £123 million, which will only rise as more properties are listed for sale.
Overall, Zoopla anticipates that more than half a million buyers this year will benefit from some level of stamp duty relief.
Regionally, house price growth in the Midlands, North of England, Wales and Scotland are at nearly ten-year high, fuelled by the relative affordability in these markets. This is compared against house price growth in the South of England, which is up on last year, but relatively lower compared to the highs recorded over the past decade.
At a city level, Liverpool and Manchester continue to show the strongest levels of annual house price growth, up 6.6% and 6.4% respectively.
David Ross, managing director of Hometrack, commented: The 95% LTV mortgage guarantee scheme and the stamp duty extension outlined in the Budget have led to a spike in buyer demand, which was up 24% in the days following the announcement. The stimulus provided by the mortgage guarantee scheme will likely promote a similar increase of uptake of higher equity loans from the knock-on in demand up the property chain.
He said: With time to complete standing at around four months, buyers in the North of England look set to benefit the most – with two-third of local stock under £250k in value, and therefore always exempt from stamp duty.