This spring is transforming the UK property market after a period of hesitancy amongst sellers. In March, the number of transactions in prime central London was the highest over five years in a row. There was a demand spike in March 2016 ahead of a 3% stamp duty surcharge, but the current level doubles that. The growth continued in April.
More than 42% of respondents to the latest RICS UK Residential Survey said they had seen an increase in buyer enquires in March. It is the record rise in demand since September 2020.
Provisional data from HMRC suggested there were 190,980 residential transactions in the UK in March, with buyers and sellers rushing to complete deals in time for the original 31 March deadline. This is more than double (102%) the amount of transactions in March 2020 and 32.2% higher than February 2021.
The IHS Markit house price sentiment survey suggests UK households are more confident about future price growth than at any time since mid-2018. The April survey recorded a significant score of +65 of respondents expecting future prices to increase.
Halifax analytics reported renewed growth, with a 1.1% increase in UK house prices after a decline in February. The annual price growth rose to 6.5%, ahead of many previous expectations. These data correspond to assessments made by Nationwide (6.3% Q1 house price growth).
The top performer in the period was the North West (up 8.2% on an annual basis). The weakest growth observed in London (up 4.8%). The average price of a property object in the North West is now £181,999 compared with £482,576 in London.
Main trends in the UK real estate market are:
- Growing demand as lockdowns ease;
- New homes value increasing;
- Low supply levels;
- Demand/supply imbalance most strongly affects family houses.
ORACLE CAPITAL GROUP is an investment and real estate development consultancy. We specialise in residential and commercial property projects. We provide accountancy and tax services for buy-to-let companies.