The housing market has desperately needed homes to be listed by sellers. Demand from hopeful home buyers has far outweighed properties coming onto the market. Now, with a third lockdown, the heightened threat of the global pandemic has pushed the imbalance even farther. According to the current house price index released by Zoopla, the flow of new homes coming available on the housing market in the first few weeks of 2021 is 12% lower than the level of new homes coming onto the market twelve months prior. 

It is expected that an easing of restrictions due to Covid-19 will bring more sellers to the market, but for now buyers have fewer choices than those buying last year.

During the holiday the demand from buyers was strong, but appeared to be cooling off. It was thought that home buyers had rushed to the market to take advantage of low interest rates and the stamp duty holiday. Meaning that a boost had occurred due to specific motivation and the level of demand would naturally begin to decline. 

However, growth in the housing market is faster than seen at the start of 2020. In the days to 17 January, demand was 13% higher than the same period last year. 

The start of the year revealed a market that had 6.4% few homes available to buy than last year, while demand is as stated higher than last year. This situation will push house prices upward and it will close out hopeful home buyers from the market. 

Richard Donnell, research and insight director at Zoopla, remarked, “The housing market momentum built up in 2020 H2 has rolled into early 2021, despite a spike in the pandemic and a third lockdown.

“Sellers are more cautious however and appear to be waiting for case numbers to drop much further before listing their home, or until we see a return to tier based restrictions.

“The strength of the market in 2020 has eroded the available number of homes for sale and this will mean continued upward pressure on house prices in the short-term.

“The most affordable parts of the UK are recording the highest rate of price growth for 10 years up to 5.4% a year.

“We still expect house price growth to slow towards 1% by the end of the year.

“The rush to beat the stamp duty deadline continues and sellers who agreed to buy a home in 2020 would reasonably expect to make the stamp duty saving.

“Delays mean we expect up to 70,000 sales agreed in 2020 to miss the deadline meaning the case for a short extension is growing.”