No one would have predicted that 2021 to date, would be one of the busiest sales markets in history, with properties flying off our books. And now, with life once again starting to resemble some sort of normality with the vaccine rollout going to plan and the economy forecast to rebound more quickly than initially projected, our Managing Director Joe Gervin says there could be more good news for the property market as we head into summer.
A year ago, the housing market was closed for business, however, now house price growth across the UK is at its strongest level in over 13 years. “Few would have predicted then the current state of play, yet despite all that has happened, property has remained robust. Mortgage lending and property sales hit record highs in March, as too the average price of a newly marketed property. That record was broken again in April, with the average asking price now just over £333,500. The time taken to secure a buyer has fallen to just 45 days, the quickest Rightmove has ever recorded. We have seen properties going to sale agreed on the day it was listed. Although sales and mortgage approvals fell slightly in April, they remain significantly higher than the longer-term average and the impetus to move continues,” Joe adds.
He continues that according to the UKHPI, annual price growth across the UK is at its strongest since August 2007, with the more affordable northern regions surging ahead of their southern counterparts. “Demand continues to outpace supply with data from Hometrack revealing that new supply is 30% lower compared to 2017 to 2019. This imbalance could well start to ease over the coming weeks, as many people focus on enjoying the relaxation of restrictions, but the months ahead look set to remain busy. Family homes with three bedrooms or more remain highly sought after. Demand for extra space continues, whether from first-time buyers or those looking to upsize, with business announcements cementing blended working and flexible commuting as the long-term ‘norm’ for many,” he said.
“Looking specifically at Liverpool, year-on-year house prices have increased by an incredible 18.1% to £156,855. This is the third highest increase across the entire North West and Wirral sits just behind with a 17.6% rise and an average house price of £180,350.” Joe says.
Sales are brisk in the year to March 2021, with HMRC estimating that 2% more property sales completed than in the previous 12 months, even with the enforced closure of the market in spring 2020. On average homes in the North-West are taking approximately 42 days to sell.
Looking at the rental market, Joe says that much like the sales market, demand outstripping supply is having an impact. “The RICS reports that a shortage of new supply and increasing demand is helping support rental prices. According to TwentyCi, new instructions in the first quarter are 9% lower year-on-year. Apart from London, rental values are significantly higher across all regions of the UK, than this time last year. HomeLet figures point out that, excluding London, the average monthly rent for new tenancies is £853, up 6.2%. Across the UK, average prices were 2.9% higher in the year to April, on par with the projections of 3% price growth in 2021.”
Joe says that overall, the economic outlook is optimistic, which will have a positive impact on the property market. According to GfK, consumer confidence has risen to its highest level since the country entered lockdown over a year ago and business confidence is high. The annual rate of UK inflation rose sharply from 0.7% in March to 1.5% in April as restrictions eased and consumers started spending across the economy. The Bank of England forecasts economic growth of 7.25% over the course of 2021, the strongest in over 70 years.
We're launching a new series which will see us compiling a National and Regional Property Market Report each Quarter in conjunction with our colleagues at The Guild of Property Professionals. You can read our Summer edition by clicking on the image below. And, if you are considering selling or letting your house please contact us on 0151 236 7771.