UK house prices have reached a new high, averaging £230,700 per property and now tracking 30% above the 2007 market peak. These are the latest insights from Zoopla in its latest monthly House Price Index (June 2021).
House price growth was up 5.4% year-on-year in June, more than double the year-on-year price growth recorded 12 months ago, when annual house price inflation was tracking at 2.2%.
Property prices are being supported in part by a severe shortage of homes for sale. There has been a 25% fall in the volume of homes for sale in the first half of this year compared to the same period in 2020. Supply has now failed to keep pace with demand since January 2021, with no signs yet of a reversal.
Transaction volumes also show no signs of abating, with sales agreed running 22% ahead of average levels in 2020. However, buyer demand dipped 9% in the first half of July after the initial stamp duty holiday ended, but overall remains elevated - up 80% compared to the average for this time of year in the ‘more normal’ market conditions seen in 2017-19.
Demand is also supporting house price growth, with Northern Ireland and Wales registering the highest growth of 8.6% and 8.4% respectively, which equates to the highest growth in either country for 16 years in Wales.
At a regional level, house price growth is at its highest in the North West (7.3%) and Yorkshire & the Humber (6.8%), while London trails with annual house price growth of 2.3%.