The introduction of stamp duty holiday has increased interest from overseas buyers too, with house prices on course to rise by 14 per cent between August and November 2020
Since the Stamp duty holiday was introduced back in early July this year, it has revived the property market considerably and increased interest from overseas buyers too – but there has been some extraordinary statistics, forecasts and findings in areas of the sector.
House prices are on course to increase by 14 per cent between August and November 2020, according to Reallymoving House Price Forecast August 2020.
It has been revealed that annual growth forecast is to hit 11.4% in October and 14% in November on deals already in the pipeline and have been agreed – but the spike is expected to be short-lived, with prices returning to normal levels in Q2 2021.
Significant pent-up demand and an urgency to benefit from the temporary stamp duty holiday is driving activity in the market, with conveyancing quote volumes on Reallymoving 55% higher during the three months from June and August than over the same period last year.
Rob Houghton, CEO of Reallymoving said: Buyers are determined to make their move now, despite the fact that the current spike in prices will in many cases wipe out the stamp duty savings. For those higher up the ladder with secure finances, a healthy level of equity in their property and little other debt, gloomy economic forecasts are only encouraging them to press ahead with the move rather than sit tight and wait out what could be a long and painful recession.
NAEA Propertymark’s August Housing Report also found one in eight (13 per cent) of properties sold for more than the original asking price in August – the highest recorded figure since November 2015.
Mark Hayward, chief executive, NAEA Propertymark, said: With the increase in the number of prospective buyers since this announcement, many buyers are clearly willing to pay over the asking price in order to secure their dream home.
However, the Yomdel Property Sentiment Tracker revealed a downward trend for the winter ahead as it showed a slowdown in the volume of new enquiries to estate agents from vendors and buyers accelerated in the past week.
Although enquiry levels from vendors stayed strong at 74 per cent above the same week last year, all vendor and buyer enquiries are steadily dropping now but do remain unseasonably high for this time of year.
Meanwhile, the Bank of England confirmed this week that the number of mortgage approvals made to homebuyers jumped to its highest level since August 2007.
Those taking advantage of the Stamp Duty holiday has meant the cost of moving home in the UK has plummeted by almost 40 per cent. The average cost of buying and selling a home is now just £6,669, whereas before the stamp duty holiday it was £10,911, according to Reallymoving’s recent annual Cost of Moving Research.
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