Housing Market Update – August 2021

The summer months have historically been slow for property sales given that families are on holiday and moving home isn’t their immediate priority, but this year we have seen an incredible amount of activity here in the South Lakes and North Lancashire.

The tapering of the Government’s temporary stamp duty ‘holiday’ has been cited as a primary reason why the sale of higher value properties of £500,000 and above has slowed across the UK, but the market for homes below this figure is still moving incredibly fast.

Whether this shows any decline from October 1st when the stamp duty tax reverts back to its pre-COVID position to the standard rates that were in place prior to July 2020 remains to be seen, but indications are that demand is still high.

The average time taking a newly listed property to be sold, subject to contract (STC), stands at just 36 days for the whole of the UK, and this comes down to 34 days for the North West region.

Here at Milne Moser, we have even had properties sold STC after appearing on our website and Rightmove.co.uk for just a couple of days – great news for vendors but also a sign that buyers need to move fast to secure their next home.

An interesting point made in this month’s Rightmove House Price Index is that, due to the fast-moving market, owners are taking a ‘sell before you buy’ tactic – ensuring they have an agreed sale on their own property before making an offer on another, an approach which keeps everything moving at pace.

When it comes to house prices, the national average has dipped by around £1,000 during the past month to a figure of £337,371. Again, this is seen as a result of the stamp duty reduced rates coming to an end and some price reductions for properties at the higher end of the market.

Average house prices for the North West sit at £228,594, a figure which represents a very healthy year-on-year increase of 8.6% and it’s the properties below the £500,000 that are in greatest demand.

Along with first time buyers, this price bracket also includes “second steppers” who are seeking to make their next move up the property ladder.
With interest rates for mortgages remaining at historic lows, and some of the big lenders once again offering 95% mortgages (albeit at higher rates), it’s not surprising that so many people are looking to bricks and mortar given the potential for return on their long-term investment.

All of this indicates that there’s little sign of the property market slowing down for the foreseeable future.

The residential lettings side remains equally buoyant with tenants being matched with properties at lightning-fast speed and plenty more people across the region seeking properties to rent. All three Milne Moser offices have ever growing lists of potential tenants so, if you are considering renting-out your property, please do get in touch.

With further easing of COVID-19 related restrictions over the summer months and employees being encouraged back into the workplace, the pressure for a property with suitable home office room may have eased a little but the expectation is that occasional home working is going to become a norm for many of us in the future.

It was also interesting to see that old TV favourite Changing Rooms making a return, this time on Channel 4. We’ve all had to spend a lot more time in our houses and apartments over the last 18 months so perhaps this will inspire us to look at our homes with fresh eyes and, if we’re looking to sell or rent, get some of the rooms looking at their best to help achieve their full market potential.

Photo by Sidekix Media on Unsplash

Article Reference:

Housing Price Index Rightmove, August 2021
https://www.rightmove.co.uk/news/house-price-index/

Please note: these links are provided for your convenience to provide further information relating to this article. They do not signify that Milne Moser Property Limited endorse the website(s) and we have no responsibility for the content of the linked website(s).