Well, what a strange year for the housing market! From stamp duty holidays, bidding wars and agents working to capacity it has undoubtably been a year to remember. As we look forward to the rest of 2021, what does it mean if you are thinking of moving home?
As the easing of lockdown one began and the introduction of the six month stamp duty holiday, the market gradually started to build momentum and buyer demand grew quicker than we could have ever imagined.
The buoyant market is still present as you read this, with continuing optimism of some ‘normality’ now that the vaccine rollout is well underway and now that the stamp duty holiday has been extended to the end of June (for properties up to the value of £500,000) and the end of September (for properties up to the value of £250,000). Another positive incentive is 95% mortgages being re-introduced to the market, providing extra help for those who want to get on to the property ladder.
The main issue? Supply.
Rightmove have reported that sales are up 55% in the UK on 2019 (the market was suspended this time in 2020) meaning the proportion of available properties are at the lowest ever recorded for Rightmove. The shortage of available properties means that asking prices are rising, with many properties gaining multiple offers only a short time after marketing.
The average property price in the UK now sits at £327,797, rising by £6,733 in just a month.
What is causing the demand?
The Government incentives have played a big part however the past year has caused property owners to completely re-assess their current living accommodation. The most popular properties on the market are three-bedroom homes or the ‘second step property’ for those who need more space. One of Rightmove’s most popular searches is for properties with gardens.
Here in the Lake District, we have found buyers looking to relocate to quieter areas and away from the cities, looking for a change of pace and a home office.
If you are thinking of selling, now is the time to do it. Although we are yet to see the impact of the economic conditions created by the Coronavirus restrictions, we expect to see this level of demand continue throughout 2021.
If you are searching for a property to buy, make sure you are ready and, in a position, to make an offer when you find a suitable property. Have your finance in place (mortgage in principle or proof of funds) and make sure you have an acceptable offer on your home, then you can imminently proceed with a purchase.
If you have any questions about the housing market in our area, contact any of our three offices for advice.
