As the coronavirus outbreak has a growing impact across the globe, here in the UK, economic uncertainty continues and property market forecasts vary, but what do we actually know about the current strength of our local property market and is now the right time to move?
Stamp Duty Holiday
Statistics aside for a moment, on 8th July 2020, the Chancellor Of The Exchequer, Rishi Sunak announced a temporary holiday on stamp duty on the first £500,000 of all property sales in England and Northern Ireland. The Stamp Duty Land Tax (SDLT) threshold has been temporarily raised to boost the property market and help buyers who are struggling due to the coronavirus crisis. These changes were introduced with immediate effect and will remain in place until 31st March 2021. This means for anyone buying a main residence costing up to £500,000, and completing this purchase between 8th July 2020 and 31st March 2021, there will be no stamp duty to pay.
Lockdown & The Property Market
With lockdown effectively causing the property market to close, over 175,000 sellers were left without access to it. Since lockdown ended, these property sellers have not messed around, with record numbers of them coming to market seeking valuations and new daily listings now higher than this time last year. At the start of July 2020, sales detail views were 61% higher than the same time last year (and up year-on-year in all regions) and lettings also experienced a 41% increase. But what are the driving factors responsible for this new wave of home movers?
Home Movers SurveyA recent survey carried out by property website Rightmove suggests that there are two driving factors behind this new group of property buyers, sellers and renters: Firstly, only 7% of vendors have withdrawn from the market due to the pandemic - of nearly 5,000 home movers asked, just 7% of vendors and 6% of buyers who were planning a move before lockdown said they no longer were.
Secondly, and perhaps more significantly, 28% of people with no previous plans to move are now joining them - of those who said that they had no plans to buy, sell or rent before lockdown, 28% are now planning to do so. Looking at this survey, it would suggest that there are now more buyers, sellers and people looking to rent in the property market.
What Does This Mean To Me?
Now is the right time to buy and sell property. The market is strong and demand is high and increasing.
Compared to before lockdown, the average asking price of property coming to market is up by 1.9% and upwards price pressure is indicated too, with buyers agreeing to 97.7% of the asking price on average, up from 96.6% in February.
Are You Considering Coming To Market?
Contact us for the latest statistics regarding your local property market and access the expert advice, support and services that Loveitts are proud to provide!