Property sales in the UK are on track to hit their highest number since the 2007 market surge. The number of property sales in 2021 is predicted to reach 1.5 million by the end of the year, totalling £500bn – the highest amount on record.
According to data from Zoopla, the number of house sales in 2021 will be 50 percent higher than 2020 with a total sale value of almost five times more.
Factors impacting the market surge
House prices have reached an all-time high this year in a post-lockdown surge. The government’s stamp duty holiday to kick-start the property market after lockdown fuelled a flurry of property purchases until September.
Many renters and city homeowners sought after properties with more space, with continuing work from home guidance allowing commuters to move further afield. Zoopla’s data suggests that the number of buyers looking to purchase a property has been up 30 percent on the five-year average in the latter half of the year.
Highest property sales on record
Since the turn of the millennium, the year with the highest number of property sales was 2006. 1.7 million properties were sold with 1.6 million the following year. After the financial crash in 2008, only 0.9 million properties were sold that year.
2021 is projected to have the highest number of sales since 2007, up 500,000 on last year and far exceeding the 2014-2019 average of 1.2 million.
In June this year, the number of properties sold in a month reached the highest level on record, with 213,120 sales recorded with HMRC. This month saw sales numbers of more than 200,000 for the first time ever – largely thanks to the post-lockdown stamp duty holiday.
Will the property surge last?
The property market is expected to cool off in 2022. Due to higher living costs, tax increases, and higher interest rates on mortgages, the number of property sales are expected to decline to 1.2 million next year, a decrease of 20 percent.
If you’re thinking of buying or selling a home in the Andover area, get in touch with our property experts at Graham & Co today.