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April 2021

Record Highs as properties sell at pace

With a monthly price surge of 2.1% (+£6,733), the national average now stands at a whopping £327,797, this figure beats the last record recorded only last October at around +£4000. This big jump comes as buyer demand soars in most areas chasing the lowest amount of properties available on the market in proportion to buyers. According to Rightmove this is now officially the fastest selling market that they Rightmove have ever recorded.

Fun Facts for April 2021

  • The average number of days to sell a property are the lowest on record.
  • Two and three-bedroom semi-detached homes are the fastest-selling.
  • During the month of March over 2 billion minutes were spent looking at property.
  • The number of sales agreed is up by 55% compared with the same period around two years ago.
  • Demand is up a staggering 27.5% whilst the flow of new supply is down -6.1%

Demand for homes

There has been a strong buyer demand since the start of 2021 leading to one of the busiest sales markets in years. Since March, demand has jumped again to levels like those last seen in the wake of the first lock down last summer. The combination of children returning to school and the stamp duty holiday extension announcement in early March as well as the return of first time buyers and the continued ‘search for space’ among homeowners came together to create a demand boost, especially for family homes.
Demand peaked in the weeks following Easter hitting levels double those of the same period in 2017 – 2019. After the first major easing of lockdown on the 12th April in England, demand levels began to fall back as the focus switched from the housing market to catching up with family and friends.

What is happening in the Midlands?

The average price of a property in the West Midlands now stands at £226,948 in April 2021 according to Zoopla. This is a rise of 1.4% since January 2021 and a rise of 9.86% over the last 12 months. In terms of a breakdown of different types of properties, flats in the West Midlands sold for an average of £156,960 and terraced houses for £161,174.

Market Prediction

Buyer demand is likely to continue to ease throughout the rest of the year as the restrictions are relaxed even more, however we are still expecting levels to remain above average throughout Q2. However the supply/demand imbalance will remain. The ‘search for space’ among homeowners has further to run, especially as some office based businesses are now confirming that their work practices will change in the longer term. At the same time the roll out of 95% mortgage guarantee will mean more demand from first time buyers. UK annual price growth was at 2.1% at the start of the first lockdown, and is now at 4% after peaking at 4.5% in January. Prices will continue to be underpinned by the ongoing supply and demand imbalance with the strongest growth in the Midlands and up North. The scale of the growth is set to slow in the coming months especially as we move towards Q3 where the stamp duty holiday extension comes to an end and the government support for the economy starts to be pared back.