In this market update we will cover:
1. New Zoopla house price data
2. The impact kids going back to school has
3. The final Stamp Duty Tax holiday ends this month
DATA DATA DATA – What’s it all about?
Zoopla HPI has shown for three months running that the supply of new properties coming to the market is down from 2019 between 25-30% each month (26% last month).
This is something that we actively forecasted at the end of 2020. Why?
Well, the stamp duty holiday has motivated people to move house earlier than planned as they were keen to take advantage of the massive tax saving (up to 15k!). After speaking to people selling in the home counties; many people have moved as much as 3-5 years earlier than planned!
Therefore, the supply of properties coming onto the market was likely to drop. And it has; but we don’t think that will last forever… The economy is regaining momentum, employment levels are increasing, interest rates are still at rock bottom and the new build developments are flying up everywhere, which always creates new sellers.
The positive house price increase across the UK is up 7.6% for 2021 and the demand levels of buyers is up by 6% too.
As they say in our industry “every market makes a market”. In the current market we’re starting to see:
• The return of Buy to Let investors
• London to home county movers
• Homeowners moving into rented accommodation after selling so they can take their time in searching (and get themselves to the front of the queue with sellers).
Doing it for the kids…. Back to School they go!
The start of September creates a national sigh of relief for all the parents out there… But what impact does it have on the property market? A MASSIVE ONE! The strongest months for new listings are normally January & February, followed closely by September & October.
Will this be the same in 2021? Early signs are that we will indeed see an influx of properties hitting our beat the portals campaigns and the property portals! Further indication of this trend is that we saw valuation request levels go through the roof over the bank holiday weekend. The first time in a weekend since the announcement of the stamp duty holiday extension!
What do you need to do if you want to get ahead of the crowd for all these new and shiny properties? Call us ASAP, express your needs in detail and most importantly let a bespoke estate agent like us handle your sale. If you sell with a corporate estate agent you will unfortunately always just be a number… That’s how we're different.
September brings the end of the final SDT holiday
So what’s next? Nothing as it stands.
However, we are going on record to say that we expect at least a conversation about stamp duty tax before the next general election (2nd May 2024). Votes are important and it is very clear that stamp duty tax stops people from being able to move. The impact to the economy since the SDT holiday is clear for everyone to see. Property prices have increased, transactions are up and trades are also rushed off their feet.
Boris Johnson or another political party could create a new wave of supporters if they act first and suggest a stamp duty tax reform… So watch this space.
Avocado Prediction Time!
There is a strong chance we are about to see a change in the market over the next 6 months… More listings, more transactions, slightly higher interest rates and a slow increase price climbing.
If you want to be part of our mission to change the property industry and you are thinking of moving, then we would love you to book your property valuation with us here.