The UK property market has experienced its busiest first half of the year on record, with average prices of properties coming to market reaching a new all-time high for the fourth consecutive month, increasing by a staggering £21,389 (+6.7%).
House prices throughout the UK have on average increased by £2,374 (+0.7%) on the previous month, reaching yet another all-time high of £338,447. This increase in average prices across the country is the most significant monthly rise at this time of year since June 2007 and has been met with record lows of stock available for purchase due to the frenzied buyer activity.
Throughout the first half of 2021, the UK property market has seen an additional 140,000 sales agreed, compared to the previous year, with property listing sites having 85,000 fewer options than their average. The surge in buyer demand and activity throughout the first two quarters of the year has revealed a shortfall of over 225,000 homes for sale, which would have stabilised the incredible imbalance between supply and buyer demand felt throughout the country if available. The average number of available properties for sale per agency is currently sitting at a record low of 16, in contrast to the previous record low of 25.
The number of sales completed in the first six months of the year is expected to reach 800,000 in HMRC’s announcement later this month, beating the previous record of 795,000 achieved in 2007. However, it is worth noting that this record was achieved under very different circumstances when mortgage lending was much more stringent than today’s stricter market. The boom in buyer demand and significant record-breaking imbalance between supply and demand has been noticed in the most expensive areas of the market, which have seen a surge of 39% more sales agreed in the last six months. In addition, the higher end of the market has experienced 15% fewer properties coming to market compared to the first half of 2019.
“Demand has also been boosted by the ongoing creation of new households, and property being seen as an asset to hold, with historically low returns from many other forms of investment. New stamp duty deadlines in England and Wales for sales completed by the end of June have also helped to exhaust the stock of property for sale and concentrate activity.” Tim Bannister, Rightmove’s Director of Property Data.
Despite the Stamp Duty holiday’s June deadline now having passed, buyer demand for residential property is still incredibly high. Property prices are appreciating significantly better than any other asset class, which is expected to continue well into next year and beyond.
To learn more about how you can capitalise on the UK’s most robust asset class, get in touch with our team of experts today.