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Demand For Housing is 12% Higher Than A Year Ago, Says Hometrack

The January 2021 Hometrack UK House Price Index has revealed that house prices climbed by 0.3% in January, taking the annual rate of growth to 4.3%, matching the highest rate of growth since April 2017.

Price growth at a country and regional level ranges from 2.8% in London to 5.5% in the North West of England and 5.6% in Wales. Meanwhile Manchester and Liverpool are the cities registering the strongest price rises, with annual house price growth of 6.3% and 6.8% respectively.

The firm says that buyer demand has remained strong through the first six weeks of 2021. It is up 12.4% compared to the same point last year - when demand rebounded after the General Election result in December 2019.

While stamp duty has prompted higher levels of activity, there is still a cohort of buyers and movers who are looking for a new home after a reassessment of how and where they are living after repeated lockdowns, and the rise of working from home. The data points towards a ‘search for space’ among some buyers. As demand remains high, the number of homes being listed for sale is not keeping pace, putting sustained upward pressure on pricing.

There are two reasons why new supply is currently constrained, according to Richard Donnell, director of research and insight at Hometrack, who adds: “As we highlighted at the start of the year, some sellers are pressing pause on inviting potential buyers into their homes for viewings during the current lockdown. We expect the flow of new supply to speed up once lockdowns ease. The data also signals a second factor emerging; increased demand from first-time buyers who have no property to sell when they move.”

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