The impetus for price rises in the UK housing market shows no signs of slowing, as new buyers continue to enter the market, according to the latest UK House Price Index released by Hometrack.
Since the start of the year, demand for housing is 39 per cent higher than at this stage last year. House prices continue to increase as demand runs ahead of supply across the UK housing market. The annual UK growth rate registered in August 2020 was +2.6 per cent, up from +1 per cent a year ago.
At a region and country-level house price growth ranges from +1.7 per cent in the North East to +3.3 per cent in the North West, Yorkshire and the Humber and Wales. At a city level, Nottingham and Manchester are recording annual price inflation of over 4 per cent.
More buyers also bring more supply to the market and available sales inventory is 10 per cent higher than a year ago. Greater supply increases choice for buyers and will keep the rate of house price inflation in check.
The strength of the recovery in the housing market so far is highlighted in new sales agreed which over the last 9 months are 3 per cent higher than over the same period last year - and this with a 50-90 days closure of the housing market.
A continuation of demand and sales over the autumn, albeit at a slower pace, will support sales volumes, and estate agency revenues, into the first quarter of 2021, Hometrack has predicted.
Households are prioritising space and location as well as factoring in a shift in working patterns. Less time spent meeting friends and family in public locations will re-enforce the importance of the home. We believe that a second spike in new cases and a tightening of restrictions announced by the Government will only serve to support this trend, primarily for those households in more secure financial positions, reports Hometrack.