House Price’s have been an area of topic for the last 2 decades; the question on everyone’s mind is how they will be affected when the stamp duty holiday comes to an end on the 31 March 2021? Will there be an avalanche of fall through’s?
Perhaps not! Buyer demand is up around 17% compared to this time last year, this it outstripping the rate of which new instructions are coming onto the market, currently 18% down annually.
This increased demand appears to show that the potential stamp duty saving isn’t being looked at as a big deterrent to buyers. In fact we are achieving full asking price offers on almost all our properties, some even exceeding the asking price.
There is clearly a supply and demand issue which is driving these price increases. We feel many families have been preoccupied with problems associated with the pandemic, that they’ve been delaying their house sale.
This is reflected in new market appraisal enquires being 20% lower than they were this time last year.
Until this supply v demand issue is corrected we are likely to see property prices continue to inflate. This may also lead to an increase of prices after the stamp duty holiday unless supply levels start to increase.
Many people have been looking for larger properties, more outdoor space after their own experience of the first lockdown.
As vaccines are being rolled out, Boris Johnson plans to reveal his route of out lockdown; we feel vendors will be more comfortable in looking to pursue their house move.
We also have the Chancellor due to revel if there is to be a stamp duty holiday extension on 3 March; the consensus is there will be for an additional 6 weeks, we all anticipate this news.
This does pose an opportunity for sellers looking to get a step ahead of marketing their properly at act now, before these government announcements are to take place.
If you would like to discuss any views within this article or are looking for a valuation on your property, please do call us on 020 8426 0631.