HOUSE price growth in Scotland and Wales is set to outperform England’s next year with figures of 1.75% and 2% respectively, compared to 1%.
Zoopla revealed the rises in its latest house price index, which suggested the first quarter of next year would see a property uplift with 100,000 additional sales expected to complete before the end of March as buyers rushed to beat the end of month deadline for the stamp duty holiday.
The company said price growth in England was lower because the Scottish and Welsh markets were continuing to recover from longer closures.
Eastern and North Eastern regions of England were set to see the lowest house price growth next year it said, with prices cooling after years of strong growth.
Both areas will register minimal house price growth of just 0.5%.
The firm said the increased transaction pipeline from the final months of 2020 would spill over into the new year after a rollercoaster year which peaked in summer, but had now fallen below pre-lockdown levels.
Despite the dip, Zoopla said demand was still a third higher than last year.
Its research and insight director, Richard Donnell (pictured right), said: “There are some challenges ahead as the country battles the impacts of the pandemic on the economy and day to day life. The impact on the housing market is less than in previous downturns as sales volumes have already fallen in recent years and affordability levels are far from over-stretched.
“We expect housing demand to slow further over 2021 and this will ease the upward pressure on prices which we expect to be 1% higher by December 2021.
“Lower sales volumes over the second half of 2021 and a growing scarcity of supply will offset weaker demand and support headline pricing levels,” he added.
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