With the Stamp Duty deadline over and done, the UK housing market has been left to recuperate following its blazing period through March to June. As many experts predicted, house sales have experienced a decline. House prices however, are continuing to soar thanks to a sustained demand from UK house buyers. This demand is particularly notable in England’s coastal addresses. An onslaught of buyers looking to relocate from cities has seen the average price of some seaside areas increase by over £100,000.
On the back-end of June’s Stamp Duty deadline, July saw UK house sales nosedive by almost two-thirds after home buyers rushed to complete the purchase of their new homes. While the end of the Stamp Duty deadline has tempered the number of house sales, their prices are still on the high. June's UK House Price Index report observed an increase of 4.5% with an average price of £265,668.
Diminishing house sales and rising house prices have done nothing to reduce buyer demand, with Zoopla reporting an increase of 20.5% above the 2020 average. The Guardian has cited ‘the pandemic and growth of home working’ as key factors to this strong demand.
With almost two years of lockdowns under their belts, it's no wonder that the average UK buyer is searching for greater space and comfort. Unfortunately, The Telegraph’s Rachel Mortimer has reported this ‘acute’ shortage of homes for sale could last well into 2022. With a depleted stock and a sustained demand, it’s unlikely that house prices will go down before the end of 2021.
Last month, we revealed the top eight postcodes where house prices surged by almost £100,000, with sunny countryside counties like Cornwall and South Hampshire among the most popular.
This heightened interest in coastal addresses suggests a shift in buyer attention from traditional city hotspots. In a similar study of 120 coastal areas, Rightmove recorded an increase of 115% in city dwellers enquiring about homes for sale in coastal locations. They concluded that this interest could increase competition among buyers.
While coastal addresses are no doubt seeing a surge in popularity, Zoopla has curtailed any doubts that London might suffer as a result. In their 23rd July press release, they reported that the demand for properties is ‘more concentrated’ in London, with average buyers searching for new homes within a five mile radius.
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