Third lockdown has created a perfect storm for the property market

by Property118.com News Team

14:06 PM, 27th January 2021
About a month ago

Third lockdown has created a perfect storm for the property market

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Third lockdown has created a perfect storm for the property market

The latest Hometrack House Price Index for January is indicating the third national lockdown is exacerbating a supply and demand imbalance in housing with demand for homes in the first two weeks of January up 13%, but supply down 12% creating a corresponding house price increase of 4.3%.

The flow of new supply has slowed as sellers are reluctant to list their properties while restrictions remain and together with rising demand and more new sales being agreed this is reducing the available bank of properties for sale. There are currently 6% fewer homes available for sale than this time last year.

The Hometrack report confirms: “The annual rate of UK house price growth is 4.3%, the highest since April 2017. The impetus for growth is coming from Wales, northern England and Scotland where strong demand and attractive affordability allow headroom for above-average growth rates.

“The rate of annual price inflation is highest in Wales and the North West at +5.4%.

“At a city level, Liverpool has jumped to the top of the growth rankings with house prices rising by 6.3% over the last 12 months this is the highest annual growth rate for 15 years.

“Manchester is close behind with a growth rate of +6.0%, back to levels of inflation last seen 2 years ago.”

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