Zoopla, the UK’s leading property portal, has released its monthly house price index today. The site revealed that house price growth was up 5.4 percent year on year in June – more than double the year on year price growth 12 months ago. The property market was expected to slow down around June when the stamp duty threshold was reduced.
In the coming months, Zoopla has predicted house price growth to edge upwards to six percent.
Although this could ease nearing the end of the year as the stamp duty threshold continues to be reduced and Government support lessens.
Unsurprisingly, family homes have proven to be the most popular property type, seeing a +114 percent increase in demand compared to normal market conditions.
All houses – from terraced to detached – have seen an increase in demand.
“To a certain extent this trend will have been augmented by the stamp duty holiday, with bigger savings on offer for larger properties – typically houses.
“But underneath this, there is a continued drumbeat of demand for more space among buyers, both inside and outside, funnelling demand towards houses, resulting in stronger price growth for these properties.”
London is seeing a “two-speed” property market at the moment with there being more demand in the outer boroughs.
Ms Gilmore added: “As Covid progresses at different rates across the world, unrestricted travel may not resume for some time yet, but when it does, demand will start to pick up once more.
“Overall buyer demand coupled with constrained supply signal that price growth will continue to rise in the coming months, peaking at around six percent, before falling back to between four to five percent by the end of 2021.”