As we enter spring, the average UK house price is £232,134, up 6% on March 2020. Transactions are 49% higher than last year, reflecting a surge in sales agreed in summer and the rush to beat the SDLT holiday.
House price growth in March slowed (-0.2%), indicating a softening of demand ahead of the original SDLT holiday deadline. Monthly mortgage approvals also slowed in February (-11%).
Demand spiked after the announcement of an SDLT holiday extension in England, Wales, and Northern Ireland. We expect upward pressure on house prices with demand up 13% and flow of new supply down -13%.
We are likely to see an increase in new listings as sellers become more comfortable with viewings, as restrictions ease.
Source: Dataloft, Nationwide, HMRC, Bank of England, Zoopla