UK property prices are 30% higher than 2007, Zoopla . says

Average property prices in Britain are now 30 percent higher than at the market’s peak in 2007, before the global financial crash.

Buyers pay an average of £230,700 for a home, the highest ever, according to the latest home price index from property portal Zoopla.

House prices rose 5.4 percent in the year to June, but Zoopla experts said they could begin to fall as the year draws to a close and the stamp duty vacation and leave scheme is abolished.

Price shifts: according to data from Zoopla, average property prices across the UK are now 30% higher than at the peak of the market in 2007

While the stamp-duty holiday and cheap mortgage deals have boosted the property market, a severe shortage of inventories has also pushed prices up.

The number of homes for sale in the first six months of this year was about a quarter lower than a year ago, according to Zoopla.

The inventory shortage problem has been exacerbated by an increase in the number of new buyers entering the market, who, of course, have no property to sell.

Gaining more space continues to be a major draw for many potential buyers, with home demand twice the 2017-19 average, while apartment popularity has declined.

Northern Ireland and Wales saw the largest increase in property prices last year, with increases of 8.6 percent and 8.4 percent respectively.

For Wales, this represents the highest annual growth rate in 16 years, with many areas becoming increasingly popular with movers and second home owners.

Home demand has pushed up their price tags, especially in Wales which has proved popular with movers and second home owners

Home demand has pushed up their price tags, especially in Wales which has proved popular with movers and second home owners

Inventory matters: the number of homes for sale does not keep up with demand

Inventory matters: the number of homes for sale does not keep up with demand

This is despite the fact that the tax break for land transactions in Wales, the equivalent of the interruption of stamp duties, did not apply to second home purchases or purchases for rental.

In Wales and England, buyers could save up to £15,000 in home purchase tax until June 30. In England, they can still save up to £2,500 until September 30.

At the regional level, house price growth was highest in the North West (+7.3 per cent) and Yorkshire & the Humber (+6.8 per cent), while London lagged behind with an annual house price growth of +2.3 per cent.

Demand in London is polarized between indoor and outdoor, with demand in London’s suburbs 86 percent higher than the 2017-19 average.

“This is partly explained by the available housing stock – with larger volumes of houses and properties with outdoor space,” says Zoopla.

By contrast, demand in central London is only 2 percent above the ‘normal’ market average.

This is also reflected in property pricing, with flats in London, mainly clustered towards the city centre, falling 0.5 percent in the year to June. Houses, on the other hand, recorded a growth of 5.6 percent last year.

Looking at other major cities, Liverpool has performed well as house prices have risen 8.9 percent over the past year.

Rochdale, Bolton and Hastings all saw property prices rise by more than 9 percent during the period, while Belfast, Manchester and Sheffield saw prices rise by more than 7 percent.

Sales levels across the country are about 22 percent higher than last year, but buyer demand fell 9 percent in the first half of July after the first phase of the stamp duty holiday ended.

However, transaction volumes are still about 80 percent higher than normal for this time of year.

Your Region: A Map Showing How House Prices Have Changed in Britain

Your Region: A Map Showing How House Prices Have Changed in Britain

Grainne Gilmore, head of research at Zoopla, said: ‘Demand is declining from an all-time high earlier this year but remains significantly above normal levels, indicating that above-average activity levels will continue in the coming months.

‘The demand for housing still exceeds the demand for flats. To some extent, this trend will have been exacerbated by the stamp-duty holiday, with greater savings for larger properties – typically homes.

“But below that, there is continued demand for more space among buyers, both indoors and out, which is channeling demand for homes, resulting in stronger price growth for these properties.”

She added: “Aggregate buyer demand coupled with limited supply indicates that price growth will continue to pick up in the coming months, peaking at around 6 percent, before falling back to between 4 percent and 5 percent by the end of the year.” end of 2021.’

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