Demand for homes rockets 29%, but supply is down
Sales completions are predicted to reach 1.5 million this year, the highest level since 2007, said Zoopla.
The property portal added that the value of these sales is forecast to be £461 billion, up 68% from 2019 due to more people buying larger, higher value homes.
It also found that demand for property has risen by 29% over the last 12 months, alongside a drop in total stock on the market of 20%.
These factors have pushed up property prices, with annual house price growth at 4.1%, up from 2.3% a year ago.
On a regional basis, the largest price growth is in Wales, at 6.3% and Yorkshire & the Humber at 5.4%. Price growth in London is at 1.9%, the lowest level since March last year.
Liverpool has seen the strongest growth of any city at 6.9% in the last year, followed by Manchester, (6.8%), Nottingham (5.6%), Leeds (5.5%) and Sheffield (5.5%)
Sundeep Patel, director of sales at lender Together, said: “Demand for homeownership across all customer bases shows no signs of abating, with buyers jostling to make the most of the Stamp Duty extension ahead of it tapering off on the 1 July.
“That said, while record low interest rates and government incentives have clearly boosted activity, there are severe supply and demand issues to be cautious of in the long-term.
“Indeed, while it’s difficult to forecast what the property market will look like as we recover from the pandemic, we’re confident flexibility will be a top priority for hopeful borrowers and their needs in the future, given the financial considerations caused by the pandemic.”