The latest trends in the UK’s housing market:
The January UK HPI (ONS) reported a 7.5% annual increase in house prices. The North West had the largest annual increase (12%) and the West Midlands had the smallest (4.7%).
The March Nationwide House Price Index saw a monthly decline of -0.2%, likely to reflect a softening of demand, ahead of the original stamp duty holiday deadline in England.
Housing supply levels remain very constrained, with total supply this year down 13% vs the 2020 average (Zoopla). An imbalance between supply and demand will help underpin house prices.
An estimated 147,050 transactions (seasonally adjusted) were recorded in February 2021, 49% higher than February 2020 and 23% higher than January 2021 (HMRC).
According to Rightmove, sales are already agreed on almost two out of three properties on agents books. The number of sales agreed in the first week of March were up by 12% on the same time last year.
The Stamp Duty Holiday was extended to the end of June 2021 for purchases up to £500,000 in England, with buyers able to save up to £15,000. From 1 July – 30 September no Stamp Duty will be payable on main home purchases up to £250,000, savings of up to £2,500 available. From 1st October, Stamp Duty rates will revert to normal.