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Stronger demand from buyers sends house prices higher

Rapid start to the year as buyer demand increases 13% across all regions and new house prices highs despite the third lockdown.

Demand from first time buyers and home movers is higher than a year ago according to the Zoopla House Price Index, just as the supply of homes slows sellers are restricted by the third lockdown.

This has seen house price growth rising 4.3% over the year, the highest since April 2017 and at a decade high for the northern regions of North East, North West, Yorkshire & Humber.

The best performing city is Liverpool with house prices up 6.3% year-on-year and average property values of £127,200 followed by Manchester higher by 6.0% with Nottingham and Leeds up by 5.8%.

Sellers reluctant to list properties

The third lockdown has created caution with sellers reluctant to list their homes on the market and the new supply of properties is 12% lower than 2019.

Lower supply of properties and higher house prices could mean remortgage buyers would remain where they are releasing capital which they can use to create more space to work from home.

During this lockdown the cases of Covid-19 are higher so it is likely sellers will return when these numbers fall and the limits on people's movement is lifted.

In contrast for London there is a higher supply of properties for sale with flats making up most of the numbers as homeowners move out of the capital.

Zoopla believes this is due to sellers trading up to houses offering more space to cope with working from home and buy-to-let landlords selling due to lower rents and changes to capital gains rates this year.

House prices have remained high as there are 6% fewer properties for sale on the market reducing the choice while demand is equal to or higher than a year ago.

Older equity release buyers have benefited from rising house prices and access cash with a lifetime mortgage to repay an interest only mortgage, home and garden improvements.

Extending the stamp duty holiday

There has been unexpected demand from home movers taking the opportunity to trade up for a larger property with more indoor and outdoor space and save money with the stamp duty holiday.

See how much your monthly mortgage interest payments would be for a trading up to a larger property at this link:
Mortgage cost calculator for instant results and figures for your new home

Usually homes sold in a calendar year take 90 days to complete, however, with 47% more properties selling in 2020 than the previous year it is taking 110-115 days to complete.

Zoopla has projected that by taking up to 4 months to complete 70,000 sales agreed in 2020 will miss the 31 March stamp duty deadline with a knock-on effect on other sales in the chain.

There is growing evidence that a delay of one month is needed to ensure all these sales can complete in time.

What are your next steps?

Speak to our LCM mortgage advisers if you are planning to move home, buying your first home, remortgaging your existing home to a new cost effective mortgage deal or are a buy-to-let investor.

Learn more by using the mortgage cost calculators, equity release mortgage calculator and property value tracker chart. Start with a free mortgage quote or call us and we can take your details.

For equity release buyers try our lifetime mortgage quote and our London City Mortgage brokers can make recommendations allowing you to receive cash from your property to help maintain your standard of living as costs rise.


Mortgage Best Buys

These are examples of mortgage products we can approach with many more offering interest rates and flexibility to meet your needs.

1.18% Fixed Rate
60% Loan to Value
£1,034 App Fee
Until 31/10/2022
Reverts to 3.59%
1.16% Fixed Rate
60% Loan to Value
£1,525 App Fee
Until 01/11/2022
Reverts to 4.09%
1.19% Fixed Rate
60% Loan to Value
£999 App Fee
2-Years Time
Reverts to 3.59%
1.17% Fixed Rate
60% Loan to Value
£1,025 App Fee
Until 31/09/2022
Reverts to 3.59%

The latest mortgage news


14 May 2021

Value of homes sold doubles as demand reaches new highs

The value of homes transacted has doubled compared to last year as demand for property hits new highs while supply is restricted.

10 May 2021

Equity release products rise by over 100 with more competition

The competitive equity release market has seen over 100 products on the market as providers launch new features to attract customers.

23 Apr 2021

Asking prices for properties on the market reach record high

New properties on the market hit record asking prices up 2.1% this month as demand drives sales to the fastest ever pace.

16 Apr 2021

Equity released from homes falls due to pandemic lockdown

The pandemic lockdown restricts the amount of equity released from properties in 2020 even though interest rates fall to record lows.

Call for your free quote 0800 955 0058

  • IMPORTANT

    Equity Release may involve a Lifetime Mortgage or a Home Reversion Scheme. To understand the features and risks, please ask for a personalised illustration. Equity Release may affect your entitlement to means tested state benefits and will impact on the size of your estate. For Equity Release London City Mortgages charge a fixed fee upon completion of £695. For Mortgages a fixed fee is charged on application. Typically this is from £295 up to £495 for the services selected.

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