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As this roller-coaster year comes to an end, housing market activity remains resilient. Despite the two-month sector shutdown, the market will end the year strongly.
This is evident with the increasing annual rate of UK house prices. In November 2020, the growth rate increased to +3.9%. This is 1.3% higher than the growth rate in November 2019.
The Regions Continue to Perform Strongly
Regions across the UK are performing much more strongly than others. Average prices in the North West are growing at 5%, followed by 4.9% in both Wales and Yorkshire and the Humber. Many cities are also showing a higher level of growth. Manchester and Nottingham are demonstrating a 5% increase in property prices over the past year. At CityRise, our portfolio of properties spans across the thriving cities of London, Manchester, Birmingham, Leeds and more. With the market showcasing continued growth, we believe this is the right time to invest in the housing market.
Whether you are an investor looking to expand your collection, a first-time buyer aspiring to step onto the housing ladder or a developer working on your next property. Contact one of our experts today to guide you through the process offering you professional advice to ensure you get the most out of your investment. The sector continues to drive forward, with the average UK house price at £223,400 which is 3.5% higher than 2019.
An Increase in Demand
From the table below, it is evident housing prices continue to rise at a substantial rate with each passing month. Demand for housing is 40% higher this year than in 2019. Although demand for properties has decreased, it is still a solid 33% higher than 2019, when the General election impacted levels of activity.
The latest housing price index shows the following figures:
The number of sales agreed continues to rise above average. In comparison to 2019, 2020 recorded a further 9% of sales agreed. The transition of sales agreed will continue into 2021 as they convert into completion. The value of the sales agreed has also increased by 26%, on last year. The combination of more sales at higher prices equates to an additional £62bn sales. This takes the annual total value for 2020 to £300bn. Consequently, there has been an increase of 68% in mortgage approvals in October 2020 in comparison last year. With over 130,000 sales agreed last month.
We can predict a strong start to Q1 of 2021 as the market remains incredibly strong. The availability of higher loan-to-value mortgages, for those with 10% deposits or more are already increasing, therefore, supporting more first-time buyers early next year.
Along with the rush to beat the stamp duty deadline, a busy start to 2021 will spring from the unsurprising new year resolutions. Many people may take this time to focus on a fresh start, including starting to hunt for a new home. These factors will result in an increased demand for properties.
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