UK house prices now 30% above pre-financial crisis peak

Zoopla says the average price of a property is now £230,700

UK house prices reached a new high last month, 30% above the peak prior to the 2008 financial crisis, according to property website Zoopla.

Zoopla also said that the average price of a property is now £230,700, 5.4% higher than June 2020.

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The move comes as the volume of homes being placed up for sale is down by 25% during H1, compared to the first half of 2020.

Zoopla said it has seen can increase in the popularity of larger family-style homes, as demand for houses has more than doubled compared to the levels seen prior to the pandemic.

Supply and demand have been out of quilter since the beginning of the year, while there is no sign that supply levels will catch up soon, according to the property website.

“Demand for houses is twice as high as typically seen at this time of year between 2017 and 2019, accelerating away from demand for flats, creating a disparity in average price growth across the two property types,” Zoopla said.

“House prices are being supported in part by a severe shortage of homes for sale, with stock levels down some 25% in the first half of the year compared to 2020.”

Transaction levels are continuing apace, with agreed sales 22% up compared to the same point in 2020.

Additionally, the housing market in the capital is falling behind the rest of the country and looks set to carry on doing so.

The North East saw the highest level of growth at 7.3%, while Yorkshire and the Humber closely followed with 6.8%.

London’s market grew at a rate of 2.3%, 3.1% lower than the national average.

Grainne Gilmore, head of research at Zoopla, comments: “Demand is moderating from record high levels earlier in the year, but remains significantly up from typical levels, signalling that above average activity levels will continue in the coming months. 

“Demand for houses is still outstripping demand for flats. 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.”

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