House price growth across the UK has hit a two-year high of 3.9%, new statistics published in the December Zoopla UK Cities House Price Index revealed.

Zoopla announced this was the highest rate recorded since September 2017, and that every city in England and Scotland had also registered a bounce in buyer demand in the opening weeks of 2020.

The increase in house price inflation followed flat to falling house prices in the latter parts of 2018, and was bolstered by a surge in buyer demand, with HMRC data highlighting sales transactions in December 2019 were up by 11% compared to the same month a year earlier.

Zoopla’s analysis also found buyer demand at the beginning of 2020 – in the period between 23 December 2019 to 19 January 2020 – was 26% higher than the same four-week period in both 2019 and 2018.

Apart from Belfast, the property expert reported that every UK city recorded an increase in demand from buyers over this time. Cities in the Midlands and north of England had recorded the strongest interest from buyers so far this year, with Zoopla indicating that Sheffield, Leeds and Leicester had recently recorded above average increases in buyer interest – at up to 20% higher than the average.

Zoopla research and insight director, Richard Donnell, commented: “Whilst the first few weeks of the year always see a return of home buyers to the housing market, demand for housing at the start of 2020 is 26% higher than over the last two years.

“This is partially due to fading political uncertainty; households who were holding off moving are now starting to return to the market and this momentum has been supported by low mortgage rates.

“The cities with more affordable house prices, such as Sheffield and Leeds, have seen the greatest increase in buyer demand as house hunters continue to focus on value for money this year.”

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