Annual house price growth now stands at 4.7%, up from 2.2% a year ago, with Yorkshire and the Humber recording the second highest rise in England and Wales, according to Zoopla
Our region saw an average house price increase of 6.2% between May 2020 and May 2021, while Wales topped the table with a hike of 7.1 per cent. London had the lowest rise with 2.2% and the South East registered 3.6%.
The Zoopla cities index reveals that house prices in Liverpool have had the greatest growth with a 7.9% annual rise, Manchester is close behind with 7.2% and Sheffield has seen the third greatest increase with 6.6 per cent. Leeds is sixth in the table with 5.9 per cent growth.
The number crunching shows that average house prices in the UK have risen by more than £10,000 over the last year, taking the average price to £229,300. As a result, 1.8 million homes have been lifted into a higher stamp duty bracket. Zoopla says that some 940,000 additional homes will be subject to a level of stamp duty at 5% should they be purchased by a homemover, while an extra 130,000 properties will attract stamp duty at 10%.
The number of homes now in the lower stamp duty bands in England is falling, while the price growth means it is rising for the top bands. The average additional stamp duty payable on homes that have moved up into the 10% stamp duty band will be around £6,100 after the end of the tapered stamp duty holiday in September, while the additional cost for the average homes that has moved up into the 5% band will be around £725.
The property portal says that buyer demand has moderated as stamp duty holiday ends but remains elevated compared to normal market conditions Supply and demand issues are pushing prices up as the total stock of homes for sale remains constrained, down 24% in the year to mid-June compared to the average in 2020.
Zoopla says that demand is being fuelled by the stamp duty savings still on offer. Buyers of homes worth up to £250,000 will pay no stamp duty from July 1 until September 30. First-time buyers are also more prevalent now that 90% and 95% mortgages are more widely available. From July 1, first-time buyers will pay no stamp duty on the first £300,000 of the purchase price.
The search for space and a change of lifestyle is also boosting the housing market and Zoopla predicts that activity will remain buoyant in the second half of this year. Time to sell, which measures how quickly homes are sold subject to contract after being listed, fell to 22 days in May, down from 42 days in May 2019, creating the fastest moving market in at least five years.
Zoopla adds: “Demand may ease further as the re-opening of the economy allows people to do more and travel more widely, but at the same time, the confirmation of working practices for office-based workers will lead to more homebuyers being able to push ahead with a move.
“The total stock of homes for sale continues to run well below historical norms, and this will underpin pricing. At the same time, it may also constrain potential activity, especially for buyers looking for family houses. Even so, we forecast that this year will be one of the busiest for the housing market since the global financial crisis - with 1.5 million residential transactions.”