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Average UK house price hits £235k as market shows no signs of slowing

The average UK house price is now £235,000 with the summer market moving at its fastest pace for five years, a new report shows.

The latest House Price Index released by property website Zoopla shows that the housing market is continuing unabated, despite many experts anticipating a slowdown due to the end of the stamp duty holiday in September.

The average house price rose by 1.2% in the three months to the end of August, taking the annual rate of price growth to 6.1%, up from 2.8% in August 2020. 

The average UK house price is now £235,000 with the summer market moving at its fastest pace for five years, a new report shows

Average UK house price hits £235k as market shows no signs of slowing

As has been the case for six months, Wales is recording the highest level of price growth at +9.8%

As has been the case for six months, Wales is recording the highest level of price growth at 9.8%, followed by Northern Ireland (8.4%) and the North West of England (8%).

Price growth in Liverpool continues to be the highest among the UK’s major cities, with average prices up 9.8% in the 12 months to September. 

Manchester and Sheffield are also registering high levels of growth, at 8.1% and 7.6% respectively.

Bringing up the rear in terms of house price growth is London, with average values up 2.2% on the year, below inflation.

As examined in previous Zoopla reports, in the face of the very strong buyer demand evident since May last year, average home values have risen by a greater margin in regions and towns where relative affordability is greater. 

London is the region which has the greatest affordability constraints, with the average house price now above half a million pounds.

Northern Ireland (+8.4%) comes second on the list, followed by the North West of England (+8%)

Northern Ireland (+8.4%) comes second on the list, followed by the North West of England (+8%)

Bringing up the rear in terms of house price growth is London, with average values up 2.2% on the year, below inflation

Bringing up the rear in terms of house price growth is London, with average values up 2.2% on the year, below inflation

In addition, demand levels have also trailed in parts of London over the last 18 months due to the lack of international travel, and slower domestic demand as a cohort of buyers looked to move into the wider commuter zone or further afield amid a new flexible working environment.

However, there are now signs that this trend is starting to turn, with buyer demand in the capital up 14% over the last month. 

This translates into a 25% rise in demand for houses across London and a 6% rise in demand for flats, as life continues to return towards normality. 

Overall, average UK house prices are up £17,508 since the start of the pandemic. 

The report also highlights that the market is continuing to move at its quickest pace for the past five years with the time between listing a property and agreeing a sale consistently averaging under 30 days each month since May. 

Commenting on the findings, Gráinne Gilmore, head of research at Zoopla, said: 'Stock levels will start to rebuild in early 2022 as market activity returns to more normal levels'

Commenting on the findings, Gráinne Gilmore, head of research at Zoopla, said: ‘Stock levels will start to rebuild in early 2022 as market activity returns to more normal levels’

Typically, time to sell would be over 40 days at this time of year. Additionally, buyer demand is still 35%% higher than average levels recorded over the last five years. 

Commenting on the findings, Gráinne Gilmore, head of research at Zoopla, said: ‘The ending of the ‘tapered’ stamp duty holiday has had little impact on buyer demand, which remains higher than typical levels for this time of year.

‘The demand coming from buyers searching for space, and making lifestyle changes after consecutive lockdowns, has further to run.

‘Balancing this however, will be the ending of government support for the economy via furlough, and more challenging economic conditions overall, which we believe will have an impact on market sentiment as we move through Q4.

‘We expect the market to remain busy compared to historical norms, and for price growth to remain in firmly positive territory at the end of the year, although lower than current levels of +6.1%.

‘Stock levels will start to rebuild in early 2022 as market activity returns to more normal levels.’

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