Over the last five years property prices have increased nationally on average by 21.5%, according to property platform Zoopla’s latest house price index released this morning, with the average value of a UK property increasing by over 8% in the last month alone.
Following the incredibly busy start to the year for the UK property market, buyer demand remains unseasonably high, with the new supply of homes coming to the market continuing to rise. As the increase in house prices and increased demand remains attractive for property owners, buyer demand within the UK is still outstripping property supply, with total stock levels remaining constrained and putting further pressure on pricing in the industry. As a result, cumulative five-year growth in prices across all regions in the UK ranges from 29% in the Northwest to just 9% in London.
The most significant price growth across the country has been registered in local markets, such as Manchester and Newcastle, which have the highest level of buyer demand with the lower average prices. Compared to the national average house price of over £350,000, Manchester’s average cost of just £248,847 has attracted investors and owner-occupiers alike and increased the value growth in the region.
Rivalling the surge in buyer demand during last year’s stamp duty holiday, the level of buyer demand exhibited at the beginning of this year and through into March has resulted in a 65% increase in the average level of demand registered over the last five years. With the average time to sell a home in the UK currently only 29 days, the market shows no sign of slowing, and the pace of activity in the industry is expected to continue to grow as the year continues.
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