Zoopla’s latest index shows UK property sales high but supply is lagging
The number of UK property sales completions is likely to rise by almost 50% this year, according to the latest house price index from Zoopla.
Indeed, the index predicts that completions will reach 1.5m by the end of 2021 – up from 1.04m in 2020.
It also points to a 68% increase in the sale value in 2021 compared with 2019, with annual house price growth currently at 4.1%. However, Zoopla points out that constraints remain on housing stock, with 20.8% fewer properties on the market now versus the same month a year ago.
Sundeep Patel, director of sales at Together, has picked up on the issue of the shortfall between supply and demand. He 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.”
Meanwhile, Nigel Purves, CEO of Wayhome, says that the system is currently displaying ‘clear imbalances’.
He 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.”