2021 looks promising

The property market is looking promising at the time of writing this post.  The Government has announced their ‘road map’ with provisional dates leading to the removal of restrictions by 21st June 2021, provided the data and stats for recovery from the pandemic continues to improve at the current rate.

2021 property market

I receive regular email updates and newsletters from Rightmove and today’s shows the following headline:

‘Strongest Spring housing market for home sellers in a decade’

Here is the link to Rightmove’s interesting news – thanks go to Rightmove:

Rightmove March 2021 news

It’s obviously best to take five minutes to read the article above in full, but brief bullet points are as follows:

  1. Demand levels enquiring about properties on their site is 34% higher than last year this time.
  2. People are searching for more space and a change of lifestyle.
  3. In February 2021 Rightmove recorded 7,000,000 visits on an average day – an increase of 40%
  4. The average asking price has risen by 2.7% in the last 12 months to £321,064 nationally.
  5. Asking prices increased for the second consecutive month with a rise of 0.8% (+£2,484) recorded in March.
  6. Fewer properties are coming to market, causing a serious shortage – levels were down by 20% in February 2021 compared to February 2020, but 5% in March 2021 compared to last year.
  7. Sales agreed for the first two weeks of March were 12% higher than a year ago.
  8. Almost two out of three properties on estate agents books are ‘Sold Subject To Contract’.

As the restrictions lift, and nervousness decreases, I expect the number of houses coming to the market will increase although no doubt 2m distance along with facemasks will undoubtedly still be observed where possible – our new normal for house viewings.

Property market March 2021

 

October after Lockdown

News articles can be conflicting at the moment, with some saying that houses are selling very fast and frequently above the asking price, whilst other news is saying that prices have been reduced to get a sale.

Rightmove.co.uk consistently writes that properties with outdoor space are selling the fastest.  This is due to the vastly increased number of home-workers – either having a view from the window to work from, or converting outdoor space into offices at home.

Properties in the £1,000,000+ bracket used to be slow to sell, but are now up in volume by 2% and selling much faster, 18 days faster than a year ago, with Norfolk, Wiltshire and Cornwall being the three top areas for millionaire property sales.  Norfolk sales are up by 244% to a year ago, with Wiltshire at 174% and Cornwall up by 165%.  Properties in this price bracket are finding buyers faster than in the last six years.  Cambridge is the most popular place to buy a £1m+ property, taking on average 40 days to sell.  Thanks go to Rightmove.co.uk for this information.

With the country adapting to living with Covid-19, the benefits of city living may be outweighed by the benefits of countryside and coastal living, with the beauty of nature now taking higher priority in many people’s lives.  A £1m+ property in the country will provide a much larger property than a London-based property.

Large gardens, outbuildings, greenhouses, drives, and garages are common place with £1m+ properties outside of cities, but I suppose the down side is you don’t always have restaurants on your doorstep and can’t order food or Uber – will restrictions of living with Covid-19 prevent these benefits though, because as I write this post pubs and restaurants are legally not allowed to open beyond 10.00pm.

Not everyone can afford a £1m mansion, so the good news is that the whole of the property market is moving faster than a year ago, with the average sale taking nine days less (according to Rightmove.co.uk).

Gardens, land, countryside and coastal views, with nature walks are certainly high in demand in 2020.

Approaching Crick village

Post Lockdown

Estate agents have been back to being fully functional for several weeks now, at the time of writing this post – the restrictions were lifted mid May 2020 with a massive impact due to viewings, completions and removals being placed on hold from March.

Zoopla estimated that 373,000 property sales were put on hold at an approximated value of £82 billion.

From reading numerous articles, it would appear that prices in London have been more negatively impacted than surrounding counties, mostly due to the increase in working from home, and the desire to move to properties with gardens and space rather than London commuter convenience.

The Stamp Duty Holiday implemented recently, until 31st March 2021, has help to boost incentives to move, with savings as follows:

House Prices of £300,000 could make potential savings of £5,000

House Prices of £450,000 could make potential savings of £12,500

House Prices of £500,000 could make potential savings of £15,000.

Let’s hope the above Stamp Duty savings will manage to prevent too big a slump in the property market.

Stamp Duty Holiday savings