Home price growth will reach 17.5% by the end of the year

Annual home price growth will reach 17.5% by the end of the year, according to the Reallymoving listing service.

Such is the urgency for home sales to be completed before the end of the stamp duty holiday that prices are expected to rise 8.8% in the next three months alone, including a 6.1% increase between September and October.

Suppose Reallymoving is accurate in its predictions based on previously agreed deals. In that case, the typical agreed price will rise to just under £342,000 in December.

“The period before Christmas will be decisive.”

Rob Houghton, CEO of Reallymoving, said: “Our data indicate continued substantial price increases in the lead up to Christmas, but the slowdown in the growth rate in November and December could be an early sign that the spike in activity after at closing beginning to run out of steam.

“For the remainder of the year, the stamp duty holiday will continue to support demand, but the real test will be the beginning of 2021, when the window to offer a property and complete it before the March 31 deadline begins to close. This is likely to occur in the context of rising unemployment and continuing lockdowns, hampering economic activity, and undermining consumer confidence.

“An increasing number of first-time buyers have been shut out of the market in recent months due to competition for homes and high-value loan-to-value mortgages.

“But if the government goes ahead with launching its proposed 95% loans in spring 2021, that would help overcome the biggest barrier to homeownership for thousands of first-time buyers, driving demand into the extreme bottom of the market at a crucial time.”

“The Stamp Duty Holiday has boosted demand.”

The impact that the stamp duty holiday has had on the property market has been significant. Not only did it lead to an increase in sales, but it also allowed sellers to obtain better profits than expected. In turn, this improved the reopening of the real estate market after the pandemic caused the forced closure.

Buyers have used money that would otherwise go to taxes to buy more expensive properties, which has kept the real estate market activity above expectations. However, uncertainty remains in the air, and what will happen after March 31, 2021, is a mystery. However, everything indicates that it will be a crash in the market.

At the moment, the stamp duty holiday continues to be a beneficial factor for the market. If you are thinking of buying a property, this is the right time.

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