The lockdowns experienced as part of the response to the COVID-19 pandemic saw some surprising moves in the property market. Rather than the predicted downturn in house prices, the opposite effect was seen. The price of the average house across the UK increased at an unexpected rate. In this article, we take a look at the continued increase of prices in the property market and what this means for first time buyers and homeowners alike.
What’s The Housing Market Like Post-Lockdown?
The rise in property prices experienced during lockdown is showing no signs of stopping, even as we begin to experience some semblances of normality post-lockdown. Zoopla are reporting that the property market is experiencing its fastest pace for 5 years with the price of a house increasing, on average, by £44 per day for the last 6 months. The period between July 2020 and January of this year this was £30 per day and Sales are being agreed on average in less than a month.
Has The End of The Stamp Duty Holiday Affected Sales?
It appears that the end of the stamp-duty holiday in September has done nothing to reduce the appetite for moving or slowed the rate at which house prices are increasing. The value of the average home has increased to a record high average of £235,000.
Homes in Wales are experiencing the highest increases of anywhere in the UK, with prices increasing by 10% year-on-year. For England, Liverpool comes out top with house prices increasing by 9.8%, with Manchester close behind at 8.1%.
First Time Buyer Benefits
It appears that a proportion of landlords are deciding to sell their investments with 8% of homes listed for sale (excludes London at 13%) having been previously offered to the rental market, up 5% on average from 2 years previously. As landlords typically have similar properties in their portfolio to those sought by first time buyers, this means a greater choice of housing stock for first time buyers.
What Does This Mean For Other Purchasers?
For those who are already homeowners, the sticky situation of being both a buyer and a seller in the current property market remains. On the positive side, your home is likely to sell quickly and for a good price but the slight downside to this comes when trying to purchase another home in a market short on stock – competition! This might well leave a homeowner needing some advice on the local market and when and for how much to offer a home for sale.
At Northwood, we can help. With over 90 offices around the UK, our property experts are always there to provide advice and help you build a picture of the local property market in your area. Use our handy Office Locator tool to locate your nearest office and begin your sales journey today.