Latest Zoopla House Price Index shows high UK sales but lag in supply

The number of sales completions within the UK is slated to rise by nearly 50 per cent this year, according to the latest Zoopla House Price Index.

The company released its House Price Index yesterday (26 May), in which it predicted that the number of sales completions would hit 1.5m this year, up from 1.04m in 2020.

Concurrently, it said that the value of sales in 2021 would be 68 per cent up on 2019, with annual house price growth currently at 4.1 per cent.

However, housing stock remains constrained, said Zoopla, with the total stock for sale down by 20.8 per cent between mid-May 2020 and today.

The shortfall between supply and demand was an issue picked up by Sundeep Patel, director of sales at Together.

Patel 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.”

Others, such as Nigel Purves, CEO of Wayhome, said that there were ‘clear imbalances’ in the system.

Purves added:

“Those who’ve managed to accrue savings over the last year are likely to be taking advantage of the record low interest rates and Government initiatives to secure homes that truly meet their changing needs after a year in lockdown. But others aren’t so lucky; many are stuck in rental properties which aren’t fit for purpose, and homeownership is out of their reach despite earning good incomes. We need to see real change and fast. Creating options that will ensure those who find themselves trapped in a renting cycle have an alternative route onto the property ladder is key. For this to become a reality, innovation is needed to create new pathways into homeownership.”

Kindly shared by Property Wire

Main photo courtesy of Pixabay