Hometrack publishes its April 2021 UK House Price Index

Hometrack publishes its April 2021 UK House Price Index, which shows one of the busiest sales markets in a decade having a knock-on effect on mortgage demand.

Headlines from this month:

• Sales completions forecast to reach 1.5 million this year, up from 1.04 million last year and the highest level since 2007
• The value of sales in 2021 is forecast to be £461 billion, up 68% from 2019 amid a rise in higher value homes exchanging
• Total stock of homes for sale remains constrained, down 20.8% in the year to mid-May compared to the average last year

3 key takeaways from the report:

Detailed house price metrics – 65 cities

Across the 65 cities we track, price growth currently ranges from a high of 8.0% in Rochdale, to a low of -1.7% in Aberdeen.

London House Price Index – detailed view

Annual price growth across Greater London currently ranges from a high of +4.0% in Havering, through to a low of -2.5% in the City of London.

David Ross, Hometrack Managing Director, said:

“Increased activity among higher equity borrowers – for example those driven by increased demand for larger, family homes – has led to increased demand for larger mortgages often at lower loan-to-value, offsetting risk and mitigating against the potential ramifications of extended debt. 

“As we approach the end of the SDLT holiday, the combined impact of the security brought about by the Mortgage Guarantee Scheme and the relaxation of rules around Covid are painting a positive outlook for the rest of the year.

“Mortgage lenders are set to experience continued demand throughout the remainder of the year, with momentum from 2021 likely to spill over into 2022.”

Kindly shared by Hometrack

Main photo courtesy of Pixabay