UK Property Market Update September 2021

Property prices and demand from buyers remains buoyant with annual property price inflation at 6.1%, despite the end of the Stamp Duty Holiday and property price increases of up to 9.8% in Liverpool.

Demand for property is above average for this time of year with supply still constrained, reinforcing property prices. Buyers are still searching for properties with more space, looking for lifestyle changes and having access to green space, which is expected to continue.

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Annual Property Price Growth +6.1%

The average property price increased by 1.2% from June to August, with an annual property price growth of 6.1% according to industry experts Hometrack.

This means that the average property in the UK now costs £235,000.

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Highest Price Growth in Liverpool at +9.8%

The North West region is leading the way for property price growth in England at +8% year-on-year.

The UK’s major cities have seen significant price growth with Liverpool leading the way at +9.8% with London’s property price growth falling behind inflation at +2.2%:

• Liverpool = +9.8%
• Manchester = + 8.1%
• Sheffield = +7.6%
• London = +2.2%

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Property Price Growth in More Affordable Areas

The highest levels of price growth have been experienced in more affordable areas, which is evident when comparing average Liverpool property prices to London, where affordability is the most constrained:

• Liverpool = £137,500
• Manchester = £195,100
• Sheffield = £153,400
• London = £493,300

London property prices have been impacted over the past year with the decrease in international travel and the introduction of flexible working, with hybrid Work From Home models employed by a lot of companies, allowing London commuters to move further afield where properties are more affordable. That being said, as the city opens up and international travel is making a comeback, demand from buyers has increased by 14% over the last month.

Impact of the End of the Stamp Duty Holiday

The end of the Stamp Duty holiday was tapered to avoid property transactions being negatively impacted.

The primary holiday where buyers could make savings of up to £15,000 had an impact on buyer demand in March to April where transactions would have had to be agreed to complete a purchase by the 30th June. Buyer demand decreased compared to previous months but remained high in comparison to previous years.

The final end to the holiday is on the 30th September 2021 where buyers were able to save up to £2,500 on their purchase for completions between the start of July and end of September has had a limited impact on buyer behaviour with demand still 35% higher than historical levels at this time of year.

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Fast Moving Property Market

Amid the shortage in supply of new homes to the market, there is no sign of transactions slowing down, with the average time to sell a property being below 30-days since May 2021.

As stock levels continue to be problematic for property buyers in the secondary market, it is expected that the property price inflation and speed of sale will continue throughout Q4 2021.

Buy-to-let property landlords are cashing in on the price growth and lack of rental property available, which is also pushing up rents across the UK - click here to read more. Around 13% of properties listed for sale in London have been rented out within the last 3-years; therefore, it is though that some property investors are selling up to reinvest in other areas of high rental and price growth, such as the North West of England in cities such as Manchester and Liverpool.

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Where is Best to Invest in Property?

As we have seen buy-to-let investors crystallising their investments in London, selling to reinvest in high growth areas, our primary focus is the North West of England, which has a 5-year price growth forecast of 28% and rental growth of up to 16.5% in cities such as Manchester.

• Manchester Buy-to-Let Property Investment
• Liverpool Buy-to-Let Property Investment

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