With the chancellor’s extended Stamp Duty holiday continuing to buoy the property market, the country’s biggest mortgage lender has reported that house prices are rising at their fastest pace in five years.
Halifax says that there was a 1.4 per cent increase in the cost of an average home in April 2021, meaning a new record high of over £258,000.
This is nearly £20,000 more than the average price of a UK home one year ago, in April 2020.
Why have house prices increased so much?
The Stamp Duty holiday has reduced the expense of moving house substantially, with savings of up to £15,000 available. It is set to be phased out from 1 July 2021, with full Stamp Duty payable again as from 1 October 2021.
Halifax said that for some buyers, the lockdowns had given them a chance to put more money into savings for investment in their dream properties. The new mortgage guarantee scheme has also allowed more buyers with smaller deposits to step onto the property ladder.
The past year has focused people’s minds on their homes and they have reassessed what they want and where they want to be. For many, this has resulted in a decision to move to be in a less urban location with more space and to find a property with the right configuration, such as a home office.
The heat of the property market has made it hard for some buyers to find somewhere to purchase, while some congestion with mortgage lenders and local authorities has slowed the conveyancing process down.
Russell Galley, managing director of Halifax said: “The stamp duty holiday continues to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the government scheme”
“The influence of the stamp duty holiday will fade gradually over the coming months as it’s tapered out but low stock levels, low-interest rates and continued demand is likely to continue to underpin prices in the market.”
Buying a home
The number of properties available to buy has fallen to the lowest proportion on record according to online property portal Rightmove.
The average number of days for a property to sell has also fallen to a record low, at 45 days. In March 2021, 23 per cent of houses sold within a week of going on the market, which was also a record, with two- and three-bedroom semi-detached houses the most sought-after.
With the property market moving so quickly, it is advisable to start preparing early if you want to sell or buy. By finding a solicitor to deal with your transaction straight away, you can start filling in the necessary documentation and putting together the paperwork that will be needed.
We can advise you on what you can start collating for both a sale and a purchase so that once you have a buyer or seller lined up you are in a position to proceed without delay.
If you would like to speak to one of our property expert lawyers, ring us on 0333 305 5189 or email us at info@lpropertylawyers.co.uk
