In the last year despite Covid and Brexit the property market has remained resilient and grown beyond expectation.
Since January 2020 we have seen a sustained growth in the property market. We saw this pre-pandemic and associated it with pent up demand following BREXIT.
Due to restrictions the property market closed for just over two months. Upon our return we had buyers bidding for houses where they were prepared to pay over asking price. A couple of weeks later the Chancellor of the Exchequer, Rishi Sunac, announced a stamp duty holiday. This further fuelled the property market and we saw buying demand soar which encouraged further sellers to market.
So has the growth in last year just been due to the stamp duty holiday?
Yes and no. The stamp duty holiday helped fuel an already buoyant market and encouraged sellers to list before they were considering selling. The lure of up to a £15k saving on their purchase was a real draw for them.
Years of pent up demand with the uncertainty of Brexit was unleashed just before the Pandemic halted business. The lockdown further increased this demand. Houses were in short supply and there was an increased demand intern helping push prices up.
Other countries such as Canada have seen double digit growth in the property market and this has been reported to be around 13% in 2020! This makes our reported approx. 6% growth look less aggressive and more sustainable. Another point to mention is Canada have not had a Stamp Duty holiday, nor have they had pent up demand from Brexit.
What other factors are there? Cheap money! We have seen record low rates for lending with no indication this will change much anytime soon. There is even talk of negative interest rates.
How is this effecting the local property market? As we fast approach the end of the stamp duty holiday sales now being agreed will likely run over the deadline of March 31st. If the market was just strong due to SDH we would be seeing a decline in interest. However, we can confirm we have still been receiving buying demand for houses that outweighs supply.
If you are thinking of moving give us a call and we can arrange for a COVID safe market appraisal of your property and discuss the market in more depth.
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