The UK property market continues its upward trend amid the stamp duty holiday reductions. At Global Residential, we’ve investigated why and where the market is performing so strongly. Zoopla’s latest house price index report shown below we can see that across the UK the annual % change in house price is at 6.1%. Reduction in construction levels. An affected economy. Are just some factors that are pushing the prices in the market to record level highs. But where are the strongest performing areas?
As mentioned in previous reports, cities in the North are majorly outperforming any other areas with levels in Liverpool seeing a growth of 9.7%. Manchester and Sheffield respectively have seen growth above 7.5%. The room for growth in the North is driving the price upwards as investment has flooded into these cities over the last 5 years. Encouraging an influx of workers because of the business opportunities now becoming available previously only seen in London. As people look to adopt an alternative lifestyle since the pandemic. Flexible working hours and more time at home have allowed these regions outside London to experience the highest levels of growth and prices since records began.
Let’s not right off London just yet. A resilient and powerful city. Buyer demand in the capital was up 14% in the last month since the UK become more flexible with travel and workers to return to the city. The problem across the UK remains that demand heavily outstrips supply and until new properties on the market can catch up with demand, this upward trend is going to continue into the end of the year.
Stamp duty relief has encouraged activity in the market for buyers over the past year. Many reports predicted that the market would calm down as these reliefs were eased out over the last few months. Th ending of this tapered stamp duty holiday has had little impact keeping demand substantially higher than typical levels for this time of year. Balancing in the market will be clear moving into Q4. However, we fully expect the market to remain busy and the opportunity for growth across the Northern cities and the southwest has a long way to run as investment continues to pour in.
The house price growth only makes it more difficult for first-time buyers to enter the market. Putting pressure on these people and causing a continues headache as they need to stay in rental property for much longer than planned. With average rent prices across the Northern cities still much lower than that in the south, it’s another factor that will push graduates and workers to look for employment in these rising locations over the next few years.