Property Update – July 2021
Just 12 months ago, many predicted that the pandemic may cause a property crash – yet we have witnessed a sharp upturn and even overnight queues of buyers desperate to snap up their dream homes at record high prices!
By Jemma Holden, Managing Director
PANDEMIC INFLUENCE ON BUYING
The house-buying boom has certainly been one of the unexpected stories of the pandemic.
In April, buyer demand was holding strong in every UK region, according to the RICS Residential Market Survey, while the Halifax House Price Index recorded the highest annual growth rate in five years, with almost £20,000 being added to the value of the average home since the market essentially came to a standstill in April 2020.
There’s little doubt that the pandemic and lockdown have influenced what buyers want in a home, with a strong broadband connection, flexible space and access to nature high on the wish list.
Movers have also been looking for properties with purpose-built office space and a peaceful garden area to enhance the home working environment.
A lot of people want to make the distinction between work and home life, with many finding it useful to have the flexibility to create a home-working space.
A LASTING IMPACT?
Experts agree that the way we work has changed permanently, which will, in turn, impact on the property market – although the extent to which we will continue to work from home remains to be seen.
The success of the vaccine is also boosting house-buying confidence, but this could be balanced out when the stamp duty break comes to an end in September 2021.
The UK housing market is set to remain buoyant throughout much of 2021 and interest rates are predicted to stay low in the short term. With travel restrictions lifted, we’ll see a healthy increase in foreign buyers. Second home ownership will increase in coastal regions as people grow accustomed to the staycation experience, a sector showing immense prospects.
If you are thinking of selling, now is the time to get a valuation and consider your options.
BOLTON AND ROCHDALE SEE HIGHEST PRICE GROWTH
House prices have risen in Bolton and Rochdale more than anywhere else in the country. The Greater Manchester boroughs recorded the highest house price growth in Zoopla’s latest House Price Index review.
The insights show UK buyer demand is down by 28 per cent from its pandemic peak, moderated by the stamp duty deadline. But demand is still 55 per cent higher than the average recorded in the more ‘normal’ market of 2019, according to the property website.
Manchester continues to register one of the highest levels of price growth at 7.2 per cent among the UK’s largest cities.
Out of 65 cities monitored for the report, Rochdale and Bolton saw the highest annual price growth, with Rochdale increasing by 9.9 per cent and Bolton by 8.7 per cent.