The Stamp Duty holiday has revived the property market following its reopening after lockdown.
The significant pent-up demand and an urgency to benefit from the temporary savings on offer is driving activity in the market.
Nationwide’s monthly House Price Index shows Annual price growth picked up to 5.0% in September, the highest rate since Sep 2016, while house prices rose 0.9% month-on-month.
NAEA Propertymark’s August Housing Report also found one in eight (13 per cent) of properties sold for more than the original asking price in August – the highest recorded figure since November 2015.
Meanwhile, the Bank of England confirmed this week that the number of mortgage approvals made to homebuyers jumped to its highest level since August 2007.
Estate agents are very busy with home movers keen to take advantage of the savings on offer.
For those higher up the ladder with secure finances, a healthy level of equity in their property and little other debt, gloomy economic forecasts are only encouraging them to press ahead with the move rather than sit tight and wait out what could be a long and painful recession.
However it is a different story for First Time Buyers, who aren’t benefitting from stamp duty savings in most areas and who have seen low deposit mortgages all but wiped out. This explains why the proportion of First Time Buyers in the market has dropped by 19% since May.
And the potential impact of another lockdown is starting to have an impact as home movers consider the implications of trying to move during tighter restrictions.
Those taking advantage of the Stamp Duty holiday has meant the cost of moving home in the UK has plummeted by almost 40 per cent. The average cost of buying and selling a home is now just £6,669, whereas before the stamp duty holiday it was £10,911, according to reallymoving’s recent annual Cost of Moving Research.
If you’re looking to make your move contact our expert team today on 0333 305 5189 or by email at enquiries@lpropertylawyers.co.uk
