Zoopla: House prices exceed pre-crisis levels

Jake Carter

February 26, 2020

House prices across all UK cities have exceed pre-crisis levels for the first time, according to Zoopla UK Cities House Price Index.

Central London returned to pre-crisis house price levels the fastest out of the cities in the survey at 2.3 years.

Meanwhile, Newcastle was the last city to return to pre-crisis levels, taking 12.2 years.

Overall, average house price growth across the UK was recorded at 3.9% which is close to a three-year high, data collected through the index shows.

Edinburgh noted the greatest rise in house growth at 5.9%.

In contrast, Aberdeen saw a 4.3% decline in the year to January 2020.

Furthermore, the data shows that demand is outpacing supply. It outlines that the stock of homes for sale rose by an average of 2.6% year-on-year.

Over the same time frame, demand rose by 26% and mortgage approvals increased by 5%.

Richard Donnell, research and insight director at Zoopla, said: “It has taken 12 years for house prices in all English cities to return to their previous pre-crisis levels.

“An imbalance between supply and demand is supporting the current rate of house price growth – a trend we expect to remain in place over H1 2020.

“We do not expect a material acceleration in the rate of growth in the foreseeable future, as affordability pressures will limit the scale of price growth, especially across southern England.

“The upcoming Budget is a prime opportunity for the new Chancellor to address some of the factors affecting the housing market.

“Any review of stamp duty charges to help the movement of homeowners up and down the property ladder should be made to boost transaction levels, but the extent and nature of any reform, which must be balanced against political exigencies, remains to be seen.”

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