- April home prices jumped +8.2% from last year
- Pending sales hit 10-year high in April in Prime London
April Home Prices Hit Record High in UK
For the first time in three years, home prices in the UK hit record highs during April. According to a new report from Halifax, average home prices across the United Kingdom increased +8.2% from the same timeframe in 2020.
This +8.2% increase in UK residential property prices swelled valuations by nearly $30,000.
(Halifax reminded readers that housing markets in the UK screeched to a halt during April 2020 due to the beginnings of the COVID pandemic taking hold.)
Decreasing Housing Inventories Driving Price Upticks
Just as in the US, the UK has been seeing decreasing levels of housing stock. And just as in the US, these lower inventory levels are driving up property prices.
Tom Bill, head of UK residential research at Knight Frank, said, “The shortage (of for-sale homes) deterred some owners from listing their property because they were unable to find anywhere to buy themselves, exacerbating the problem.”
Bill also stated that he believed price growth would “temper” when more properties come on to the market.
Single-Family Prices Increases, Not Apartment Prices
Though still lagging behind price growth in more suburban and rural areas of the UK, single-family homes in London are definitely increasingly seeing price increases.
Not so for prices for apartments in London. Buyers continue to want more square footage and access to outdoor space. Prices for apartments have dipped -1.9%.
Highest Number of Pending Sales in 10 Years Across London’s Prime Properties During April
Despite closed sales falling -45% in April from March highs (likely due to the supposed March deadline of the stamp tax holiday that was recently extended into September 2021), pending sales hit a 10-year high in April.
Demand for single-family homes is expected to be even higher once travel restrictions are relaxed at the end of May and international buyers will return.
Thanks to MansionGlobal.
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