House Prices Rising Four Times The Price Of Flats

House Prices Rising Four Times The Price Of Flats

Posted on Monday, June 7, 2021

It is common sense that houses are in greater demand than flats these days. This is because the impact of the pandemic has changed so much in our everyday lives. It has also changed what buyers value when looking for property.

This is something we have seen for ourselves at Aspire Sales & Lettings. We work closely with many clients in and around Oundle, and we know what people are looking for. We also stay in touch with the latest studies in the market.

Leading property portal highlights diversions in the market

According to the Zoopla House Price Index, the average cost of a house increased by 5.2% in the past year. However, in the same timescale, the average cost of flats rose by just 1.1%.

There are expectations that more than 1.5 million properties will change hands in 2021. If this transpires, it will be 45% higher than the 2020 figure. Of course, the housing market was all but closed down for over six weeks in 2020, but there was considerable activity once the market re-opened.

The total value of sold homes is tipped to reach £461 billion, a 68% increase on the 2019 figures.

There are clear reasons why property prices are responding like this

Prospective buyers have always been keen to find as much space as possible, or they can afford, but in recent times, it has been an essential factor in the property search. In dealing with the pandemic, in working from home, with increased homeschooling and even welcoming extended family members into their home, buyers need space.

Therefore, properties that deliver this additional space are in greater demand, and buyers are willing to pay more money for these homes.

The ‘search for space’ has been a critical feature of the housing market during the pandemic, with successive lockdowns prompting many people to carry out a once-in-a-lifetime reassessment of their homes and lifestyles.

Will this situation last?

Grainne Gilmore is the head of research at Zoopla, and she believes the race for space will continue for some time.

Grainne said; “The easing of lockdowns will continue to cause a natural fall in demand as people are able to see family and enjoy amenities that have been shut for more than a year. But new buyer demand will still emerge throughout the second half of the year as office-based workplaces confirm if they will be pursuing more flexible working practices.”

Grainne also said; “Households who have the opportunity to commute less frequently have more options when it comes to choosing where to live, and this could prompt a move. Likewise, older households will continue to review how and where they are living, with many more set to move for the first time in years. With an increased array of mortgages to choose from, first-time buyers will also remain active in the market.”

What impact will this have on you?

While each household is unique, some broad observations are being made about the market.

Given the demand for larger homes, if you own a spacious family home and you have been considering moving, this could be the best time. Of course, you will need to find a home that suits your needs, but this could be an advantageous situation if you are flexible concerning property size or location.

If you are looking to buy, be aware this is a competitive market. If you want to enhance your chances of success, you should research what you need, ensure your finances are in a robust condition and speak with a property market specialist.

When you are looking for specialist support in selling or letting, choose a local agent who listens to their clients carefully and takes pride in providing the utmost in customer care. We appreciate these are challenging times, but if you have any property market questions, please feel free to contact Aspire Sales, Lettings & Property Management, and we will do our best to assist you.