Housing boom set to continue as value of homes sold could rise by 46% this year

Zoopla anticipates busiest property market for 14 years

The total value of homes sold across the UK is forecast to reach £461bn in 2021, a rise of 46% from the year before.

This is according to analysis by Zoopla, the property platform, that expects the housing boom to continue.

It could be the busiest property market for 14 years, according to the report.

Just last week the Office for National Statistics said average UK house prices in March had risen by 10.2% in year. It was the fastest rate of yearly growth since before the financial crisis.

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Zoopla also confirmed it expected home sales would reach 1.52m in 2021, an increase of 45% from the year before. Therefore the value of the homes sold this year would amount to £461bn.

Director of sales at specialist lender Together, Sundeep Patel, commented on the factors bringing about a stronger than expected growth rate:

“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. Indeed, the total value of homes sold in the UK this year is predicted to reach £461bn, an increase of 46% on 2020,” Patel said.

“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.”

Research by Wayhome, the Gradual Homeownership provider, has revealed that 58% of renters in the UK consider buying a home a priority, despite the pandemic putting many people’s plans on hold.

Owning a home takes precedence over getting married or entering a civil partnership (49%), or entering an early retirement (30%). 

Although lockdowns brought the housing market to a temporary halt for a significant portion of 2020, and house prices continued going up, 45% of 18-23 year olds remain steadfast in their desire to own a home.

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