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Zoopla: Value of UK property hits £9.5 trillion after bumper year

·2-min read
Estate agent boards outside properties  (PA Archive)
Estate agent boards outside properties (PA Archive)

The value of British housing stock has hit £9.5 trillion, according to property portal Zoopla, after a bumper year for house price growth.

House prices grew by 7.1% in November, Zoopla said, meaning the average house has now gained around £16,000 in value over the last 12 months. 5 million homes increased by more than £35,000. In most regions of the UK prices have grown by more than 2019 and 2020 combined.

London is one of the few exceptions, with prices up 2.4% over the last year. However, the average price in the capital remains far higher: £497,800, compared to £ 240,900 for the UK as a whole. Annual price growth in the capital ranged from 5.9% in Bexley to a -1.8% fall in the City of London.

Surging house prices are being driven by a boom in movers but a shortfall in supply. Buyer demand was up 16% in November compared to a year earlier but stock of houses on the market was down 9.5%.

Grainne Gilmore, head of research at Zoopla, said: “This year has been a record year for the market, with the stamp duty holiday and the pandemic-led ‘search for space’ among homeowners resulting in the highest number of sales since before the financial crisis, with 1.5 million transactions.

“However such a busy market eroded the number of homes available to buy, as properties were being snapped up so quickly. This imbalance between demand and supply has put upwards pressure on prices.”

The boom has helped the UK residential market grow by £670 billion in 202 to reach a value of £9.5 trillion.

Most experts and market observers expect momentum to ease in 2022 as the market returns to more normal patterns. Zoopla said it was seeing a slowdown in activity ahead of Christmas but was expecting a brief pick up in the New Year.

Gilmore said: ““After a busy start to 2022, the market will start to move back to pre-pandemic conditions, allowing supply pipelines to rebuild. However, the demand/supply imbalance will not fully unwind, and this will be one factor supporting price growth of 3% next year.”

Zoopla’s forecast for price growth is three times that of Halifax, which last week said it was expecting the slowest growth in a decade next year.

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