Why Are Buyers Active Right Now?
With the UK officially in a recession, it might seem strange to see so many people looking for homes. There are many factors driving the demand for property right now, and if you need any assistance in understanding the market, or making a move, please get in touch with Prestige & Village.
The housing market is currently buoyant
There has been considerable activity in the housing market since it re-opened. Some experts believe this is a temporary measure, but it has lasted until September, and there is no sign of slowdown.
The stamp duty holiday has changed the market
The stamp duty holiday, in place until 31st March 2021, provides buyers with the chance to save up to £15,000. This is a significant saving for many buyers.
Rightmove’s property expert Miles Shipside said: “This move will help to keep the nation and wider economy moving because keeping the current momentum going will help prevent destabilising falls in property prices as unemployment grows, and enable a quicker economic recovery. Lockdown prevented 175,000 would be sellers from coming to market so we hope this Stamp Duty holiday will provide the spur for those missing movers to come to market.”
Miles also said; “They will find there’s currently record demand for their properties from prospective buyers, with Rightmove enquiries to agents now double what they were before lockdown. Home-movers will be grateful that the changes come into effect straight away so they don’t have to delay their plans, and what we could see now is people rushing to get a price agreed before some sellers put their prices up in the hope people will be able to pay more because of the tax savings.”
There are some experts who are less optimistic about the market’s future
Laura Suter, who is a personal finance analyst at AJ Bell expresses concerns for what this means to the market next year. Laura said; “The fact that the move is temporary will be like a sugar rush for the housing market, with people who were planning to move hurrying to do so before the stamp duty holiday ends at the end of March next year. It means that we’re likely to see transactions fall off a cliff once the tax break is whipped away in 2021.”
Some people wish to move before a second wave of the pandemic
It is fair to say there will be people who have concerns about another wave of the pandemic and an associated lockdown. This is likely driving demand for homes, as there will be households who are keen to feel settled in the event of the circumstances of March and April 2020 being repeated.
Jacqui Harley is the Head of Conveyancing at JMP Solicitors, and he said; “Whether you’re looking to get on the property ladder, move home, buy another property or add to your portfolio, now is a good time to get moving in the current climate as the housing market is particularly buoyant. We have compiled a list of top reasons to move now, to outline what is available in the current climate for those who act swiftly to make the most of this window of opportunity.”
At Prestige & Village, we care about our community, and supporting others. We aim to provide you with as much help and assistance as we can. If you have any property or housing questions, please feel free to contact us today.Back to blog