The property market is busier than it has been for a long time, and rather than slowing down in the summer months July has been even busier than June, which saw a 2.4% increase in sale prices*, largely due to high demand and low stock.
Stamp duty break
The government have introduced a stamp duty break up to £500,000. This break also brings savings for properties above this price. The reason for this was to revive the property market. In reality it was already incredibly busy, but it’s an added bonus, and has enticed more first time buyers to the market which has a knock-on effect for the luxury sector.
Unusually busy summer activity
With buyers largely avoiding holidays this year, their focus seems to have switched to moving house to address their changing property needs:
1. Need for increased living space
The recent lockdown has created a surge of interest in upsizing from families and couples who want more living space, and bigger gardens.
2. Implications of working from home long-term
A significant number of staff are expected to continue home working indefinitely. This has brought about the need for a dedicated home office, and often two home offices in households with two adults.
Escape to the country
Without the need to commute to work, there’s been a surge in Londoners looking to move away from the city. For the price of a 2 bed Chiswick flat you can buy a 5 bed house with a large garden in the Home Counties. The key question buyers must ask themselves is “can you see yourself quarantining in this house?”
Mortgages and the cost of borrowing
Naturally, with a busy property market the mortgage industry is the busiest it’s been for a couple of years. Physical mortgage surveys are once again possible, speeding the mortgage process up post-lockdown. The cost of borrowing remains at an all time low, and 90% mortgages are still available, with Nationwide recently entering this market.
Life insurance is also seeing a boom, with homeowners mindful of protecting their assets. If you’re moving house, it’s the perfect time to review insurance and your financial portfolio in general.
Overall, the property is stronger than it has been for a while and financially, there are several benefits to making the move now. If you’re thinking of putting your house on the market and looking for a new home, please get in touch with us, we’re here to help!