Many parts of the UK experience rapid house price growth this autumn. Nationwide lending bank says the acceleration is robust and is 6.5% higher than a year ago. The average property value reached £229.721.
Zoopla – the leading UK online property register, is more conservative in its estimates and refers to 3.5% growth. It is the highest growth for almost three years in a row, nevertheless. Estimation of demand for houses is below pre-COVID level but remains 34% higher than last year. Zoopla forecasts 4% price growth for 2020, slowing to 1% at the end of 2021.
Completed housing sales projected to be just 6% lower than in 2019. A total number of UK house deals remains unchanged and is close to 1.1 mln. The massive sales pipeline is coming into Q1/21.
At a regional level, house price growth is more than 4% in the North West, Wales, Yorkshire and the East Midlands. At the city level, Nottingham and Manchester climbed to over 5%, which is also higher than a year ago. A seasonal spike of real estate demand will very probably come in January 2021 in the hope of completing the sale by the end of March and taking advantage of the stamp duty holiday. The market may return to normality in the second half of 2021 with the removal of restrictions.
Housing sales volumes recorded by HMRC never exceeded 1.2 mln during the last six years. It is in-line with the 50-year average, indicating the average household moves once every 20 years.
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