Prices for both houses and flats are continuing to increase following the Covid-19 pandemic.
According to Zoopla, family homes are the most popular choice, resulting in an 114% increase in demand and shortage of stock.
The search for space has meant home buyers are looking for larger properties, causing prices for homes to increase by 7.3%.
However, flat prices haven’t seen the same boom. This has caused the price gap between houses and flats to widen.
The number of property transactions taking place currently stands 22% higher than the average level in 2020. Coupled with house prices reaching a new high of £230,700 per property, this is 30% above the 2007 market peak.*
House prices are continuing to grow with current statistics, showing a 5.4% increase in June, compared to the same time last year.
This is more than double the year-on-year price growth recorded 12 months ago.
Why is this happening?
- Race for space
Being in lockdown for the last year has caused people to desperately search for more space. Larger living rooms and extra bedrooms are some of the main factors influencing potential buyers.
Flats don’t always have the extra space many people desire, leaving them with less demand than in previous years.
- Working from home
People are searching for properties that have a home office or a spare room that could easily be converted into one.
This has made houses more favourable over the last year, as a lot of flats simply don’t have the space or option to accommodate this.
- Access to green space
After a year of being stuck indoors, it’s unsurprising that many people are now wanting to spend more time in the garden; causing people to look for properties with more outdoor space.
Conservatories are a great way to link indoor and outdoor areas, proving popular for potential buyers.
Are you looking to sell your home? Speak to our property professionals today.
