Don’t fall into the trap of thinking that the end of the stamp duty holiday is the end of sales success. Reports are coming in of a positive moving market ahead, with some very encouraging statistics in early autumn.
More….but not quite enough
Rightmove found the number of new listings in the first two weeks of September 2021 was up 14% on the last two weeks of August. Although encouraging, it is far from an oversupply of property. The trickle of new-to-market homes will hold up values and continue the sellers’ market as we move through the last quarter of the year and into 2022.
To put the current supply and demand situation into context, there are 10.1% fewer properties for sale now compared to the same period in 2020, with demand up 20.2%, according to property data analyst TwentyCi.
Looking at property through fresh eyes
The motivation to move home remains undented and in a recent article, The Times reported on the ‘deeper dissatisfaction with our homes’ uncovered in the first lockdown. In addition, a new study by Samsung Electronics UK found that 74% of UK consumers look at their homes differently now than they did 18 months ago.
This level of discontent was evidenced later on in the same study. Over half of homeowners questioned (52%) said their long-term property plans had changed, with 22% wanting to sell their property and buy a new one a top priority, followed by 12% looking to buy another property to rent out and 11% buying a second home for themselves.
Tenants too are reflecting on their next property step, with 64% of renters reporting that the pandemic had changed their future plans. Almost a quarter are now considering buying (23%), with 19% planning to purchase a property sooner than anticipated (19%).
Finding that ‘fit for purpose’ home
Although clichéd and over reported, agents agree that buyers are still looking for an antidote to where they currently live – be that faster broadband speeds, an extra room to turn into an office or a bigger garden. Many just dream of a bigger kitchen so they can cook for their family more conveniently with sufficient space for family and friends to gather, but the underlying reason for moving remains dissatisfaction in the face of re-evaluated lifestyles.
Also advancing up the agenda and spurring on home movers are eco issues – perhaps coming as no surprise in the wake of a fuel and energy crisis. The Samsung Electronics UK study also found 79% of Brits now consider how green and environmentally friendly their property is a priority – as well as the impact on the local environment.
Worries about the downturn in prospects with the stamp duty holiday ending and furlough winding up have been misplaced, as the Building Societies Association quarterly Property Tracker survey illustrates. The number of people for whom the risk of a job loss presents a barrier to homeownership is plummeting. Only 34% are putting their buying plans on hold due to the thoughts of a redundancy, after reaching a peak of 68% in September 2020 and resting at 45% only three months ago.
Buying & borrowing for the first timer
One home buying group not fazed by the end of the stamp duty holiday is first-time buyers – purchasers who are essential for a fluid and fast-moving property market. They retain favourable treatment, paying zero stamp duty if their purchase price is £300,000 or less, while first-timers buying a property worth between £300,000 and £500,000 will only pay 5% on the portion of the purchase price that exceeds £300,000.
Property novices can also use their stamp duty benefit in conjunction with the Government-guaranteed 5% mortgage scheme that has, in turn, stimulated the whole lending market to re-introduce low-deposit home loans.
We’d love to discuss the changing nature of the property market with you, relating current trends to the home you own or a property you wish to purchase. Contact us for buying and selling advice that’s tailored to your personal circumstances.