Many experts feared that the Stamp Duty Holiday surge in house buying would reach a “cliff edge” as the end of the holiday approaches, although this has shown no sign of happening.
Zoopla has released figures showing that house prices have risen on average £10,246 over the last year, however, this has also pushed more than 1.8 million properties onto a higher tier threshold for Stamp Duty Land Tax (SDLT).
The Zoopla portal shows the largest increase in property prices since October 2016, with demand still showing 55% higher than the average in 2019 which was considered to be a more “normal market”.
Current demand is proving to be higher than supply with total sale listings down 24% year-on-year. Kate Eales, head of regional agency at Strutt & Parker, said “Time to sell has roughly halved since 2019 despite the stamp duty holiday extension coming to an end. In the past, properties that may have taken weeks to go under offer are now taking just days and we are seeing, in some of the hottest markets, properties going to best and final offers.
“The Welsh market has seen unprecedented levels of interest, both on the coast and inland, and we have a hot list of buyers waiting to see property come to the market, with some properties exchanging within 48 hours of receiving offers, and others selling for 25% above guide price.
“However it will be interesting to see whether these top performing regions continue in their growth, as they historically have lower average house prices compared to other regions and, as such, are likely to be driven by the stamp duty holiday. Despite the Stamp Duty holiday coming to an end, lifestyle changes during the past year are still a driving force in the market, and might outweigh the additional cost for many.”
The property market in Yorkshire is a region which has seen a real surge in demand since the onset on Covid which looks set to continue after the end of the Stamp Duty holiday. Patrick McCutcheon, head of residential at Dacre, Son and Hartley said “The Yorkshire property market has witnessed a real uptick in demand since the onset of the pandemic, “and that’s not set to wane even with the end of the SDLT deadline. With rural and village locations in abundance, Yorkshire is certainly attracting movers both within and outside of the region.
“The proportion of prospective buyers from London and the south east who have opted to receive property opportunities has increased to almost 25%, with flexible working enabling more buyers to escape the capital in search of the countryside, without losing half their week to commuting.
“House price growth is currently running in the region of +10% compared to 2019; reduced choice of properties is only making buyers more determined. This growth is spread across all price brackets – including the plus million pound market, which has returned to form.”