Early trends so far
One of my favourite sources of information is the Rightmove house price index. It is a great resource for information on what is happening with UK house prices up and down the country along with buyer demand.
So far it looks like the 2021 property market has got off to a good start. New properties marketed are being priced competitively, maybe in a hope to get a sale agreed before the stamp duty holiday ends on the 31st March. However latest Rightmove analysis shows it’s taking on average 126 days from an offer being accepted to legal completion. So just over 4 months for a transaction to go through, meaning many sales being agreed now will miss out. Can we hope to hear of a stamp duty holiday extension? I have heard of reports about stamp duty being abolished all together. We shall see.
Buyer activity has continued to exceed the same period a year ago. According to Rightmove the number of prospective buyers contacting agents between 2nd and 12th January was up by 12%. Sales agreed numbers were up by 9% on the comparable period last year.
In the South East house prices are up 2.3% on this period last year.
Impact of Lockdown 3
Although we are in lockdown 3, this time round the property market has remained open. This has been welcomed by many property professionals. In the first lockdown everything came to a halt with estate agents and surveyors not able to go about their normal business. Causing a big backlog and mortgage applications taking longer than usual to process.
The rental market is continuing to boom with both increases in rents and increased demand for lettings. The ONS states that in the period of November 19 to November 20 Rental prices are up 1.5% outside of London.
What does the future hold?
No one knows what the future will hold. However early indications suggest a slight slow down as the stamp duty holiday comes to an end. Also coinciding with the end of Furlough which is bound to cause some uncertainty amongst many. Fingers crossed Rishi will come up with some other offering to keep the employment market open.
Realm Property Investment are still actively pursuing opportunities. One purchase is going through conveyancing and we are out actively viewing properties. We pay good referral fees for any opportunities that go through to purchase.
We offer great returns on your investment but without the hassle. Get in touch if you would like to learn more.