If
you’re thinking about moving home but are unsure how the end of the stamp duty
holiday could impact your plans, I’ve some new insights to share.
The
latest study from property portal Rightmove shows that demand from buyers is
growing, with all of the numbers they use to track buyer activity on their site
being ahead of this time last year.
As
it’s now far too late to realistically complete a deal before the stamp duty
holiday is due to end on the 31st March, it would appear that many buyers’
desires to move are not dependent on the potential tax saving.
In
fact, the number of people contacting estate agents about homes to buy is up by
18% compared to this time last year, and the number of visits to property
portals is up by 45%.
This
high buyer demand is outstripping new supply and therefore helping to push up
prices despite the challenging economic backdrop. Asking prices are going up.
First time buyers are battling with each other and estate agents to secure
their first home.
So
buyer demand is higher and prices are rising, but one thing people might find
right now is that there isn’t as much new choice as usual.
The
number of new properties coming up for sale is down by 21% annually.
I
expect that one of the main reasons for this is that owners of family homes are
delaying coming to market, understandably due to home-schooling distractions.
What else is happening in the market?
Experts
estimate that there are around 100,000 buyers who agreed a purchase before
Christmas but will fail to complete by the stamp duty deadline, and will be
faced with a tax bill that they may not have factored in when they agreed to
buy the property. Unless Chancellor Rishi Sunak extends the deadline. Rumours
are about that he will extend by another six weeks.
The
latest analysis shows that of those buyers who agreed a purchase during the
month the stamp duty announcement was made in July last year, one in five of
them are still stuck in the logjam, more than six months later.
This
is double the proportion of the previous year when only one in ten purchases
that were agreed in July 2019 was still waiting to complete at this time last
year.
So
even if you agreed a purchase the day after the stamp duty holiday was
announced, with just five weeks to go, you may still be at risk of losing out by
not having enough time to meet the deadline.
What do the experts say?
The
Rightmove property data expert Tim Bannister explained that the property market
has got off to a strong start in 2021, and that there are lots of good reasons
to put your home up for sale.
He
said: “Last year the market was unexpectedly buoyed by buyers’
determination to move and satisfy their new lockdown-induced housing needs. We
may well be seeing a continuation of that this year.
“Rightmove’s
early 2021 buyer data shows that despite the imminent end of the stamp duty
incentive, all of the key buyer metrics are ahead of early 2020, itself an
active period as the market was boosted by the post-election ‘Boris
bounce’.
“As
well as the current lockdown motivating buyer demand again, the restrictions
have also been a factor in limiting new supply, leading to some modest upwards
price pressure. These are strong signs that new buyer demand is not facing a
cliff-edge after the 31st of March.
“It
remains to be seen if this momentum will be enough to make up for the removal
of the stamp duty savings that are benefitting many buyers and have been adding
a sense of urgency to the whole market.
“So
far in 2021 home-schooling has taken priority over home-selling for some
people. Family properties are suffering most, with the difficulty of preparing
a property for marketing and viewings while it’s in use and occupied 24/7 by
the whole family likely to give you cause to delay.
“Ironically,
whilst it’s too late for the stamp duty holiday, there are good reasons to come
to market now, especially if selling a property suitable for a family? There
are more possible buyers looking and fewer suitable alternatives to divert
their attention away from yours. An early start to the selling process will
also help to get you sold, moved, and settled in before the new school year.
“With
the current speed of the vaccine roll-out, that new school year will hopefully
be spent in schools and out of the home, but many of the other new needs for
more space both indoors and out will remain.”
Thanks for reading
I'm here to help sellers, buyers, landlords, and
tenants.
Call me or drop me a message if you think I might
be able to help you.
The Good Estate
Agent – North Nottinghamshire
Tel: 01777 237310 or 07981 744003
https://www.facebook.com/thegoodestateagentnorthnottinghamshire
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