House prices are predicted to continue rising this summer as buyer demand shows no sign of slowing down. According to data captured from conveyancing quotes by one comparison site, deals agreed between buyers and sellers during springtime could result in house price increases of 2.9% in June and 3.7% in July1.
Fastest growth rate in 14 years
The Office for National Statistics confirmed the ongoing house price boom, releasing figures to show that average UK house prices in March had increased by 10.2% in a year, which is the highest annual growth rate since August 2007, before the financial crisis hit.
Buyer demand has been fuelled by the extension of the Stamp Duty holiday in England and Northern Ireland, the government 95% mortgage guarantee scheme, and a desire to move into different types of property, as homebuyers prioritise larger gardens and space to work from home.
Will 2021 break more records?
As well as impressive house price growth, this year could be the busiest for many years. Zoopla2 has predicted that 1.5 million homes could change hands this year, representing sales of £461bn, some 46% higher than 2020 and 68% higher than 2019. This would make 2021 the busiest year for 14 years and one of the top 10 busiest years since 1959.
The hotspots this summer
The ‘hottest’ regional markets, with faster sales (10 to 15 days) and the strongest house price growth, are Yorkshire and the Humber, Wales and the North West. The outlook in central parts of London is much cooler in contrast, where homes are taking, on average, two months to sell.
Get in touch
This summer there is an array of mortgages to choose from, so if you are planning to make the most of the warmer weather to progress your house hunting, please get in touch with us so we can help you assess all the available options – including your protection needs.
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.