Despite the new lockdown, the demand for housing has increased
The first six days of the second lockdown have seen demand surge 49% year-on-year as shoppers move to make purchases before the March stamp duty deadline.
Rightmove’s Home Price Index found that agreed domestic sales increased 50% in October of last year.
It is estimated that there are 650,000 sales in the process of buying and selling, 67% more than at the same time in 2019.
“Sellers are taking advantage of high demand.”
Tomer Aboody, director of real estate lender MT Finance, said: “The mini-boom has received a new opportunity with Lockdown 2.0.”
“Sellers are more realistic in their prices and take advantage of the demand.”
“Some sellers were guilty of setting unrealistic prices, believing buyers would pay through the roof, but now, with the clock ticking before the doorbell holiday ends in March, they have had to become more realistic and accept lower offers or reduce their prices.”
“Prices and volume levels are astronomically higher than this time last year when we were heading into the general election. Now, with elections long overdue, Brexit brewing and a possible vaccine for Covid-19, we expect a strong end of the year, before the economic reality of the pandemic really hits.”
Surprisingly, despite this intense activity, the average property price that hits the market has fallen by -0.5% between September and October.
Aboody acknowledges that the stamp duty holiday term is likely to be extended.
He added: “It would be surprising if the government did not extend the stamp duty relief beyond March, not to coincide with the end of the extended license scheme.”
“The lockdown won’t stop sales.”
Jeremy Leaf, North London Realtor and former RICS Residential Chairman said: “While of course they only reflect ‘ask’ and not ‘sell’ prices, the Rightmove figures confirm what we’ve been seeing in the ground for several weeks.”
“History repeats itself. Additional restrictions and the threat of another lockdown have delayed, not stopped, property movements as buyers and sellers once again demonstrate their determination to bargain hard and make the most of the stamp tax holiday.”
“Almost everyone is well aware that the delays in mortgage processing, appraisals and the transfer will mean that meeting the March 31 deadline will not be easy, even if deals are agreed in the coming weeks.”
“We have also noticed that the prospect of a vaccine has given an additional boost to visits this week, even though it is still very early. But on the other hand, this can make some sellers less likely to accept what they consider to be unrealistic offers.”
HICH LTD has revolutionized the property survey market since day one! Are you looking for a roof, structural, or bespoke survey? Request it here!
Follow us on our social networks to keep up to date with the most relevant property market news, tips for being a responsible homeowner, and much more!
Twitter: @HichLTD
Facebook: HICH-LTD
