UK residential market – the latest

The considerable house moving surge reported in the last few weeks has been propped by the Government’s decision of 8 July to lift the Stamp Duty Tax threshold to £500,000. Many vendors who had to delay putting their property on the market during the lockdown have finally entered the race and surveyors and mortgage lenders are busy clearing the lockdown backlog of sales stalled in the spring and early summer. Buyers with a small deposit or needing a bigger loan are also engrossed as finding a good mortgage deal becomes difficult due to an increased caution on landers side.  Aware of the queuing, and keen to get to the top of the list are other more opportunistic vendors hoping to benefit from the short stamp duty holiday which will expire on 31 March 2021. The bottom line is: the market is busy with property owners who need to sell and buyers who need to buy, and all are rushing to get all the current benefits too.  All the stats and numbers are up and add to this upbeat market view: there are more buyer enquiries, new listings, completions, and, according to Halifax, there is a strong property market growth with average August UK house price 5.2%  higher than the same time 2019.

The property for sale search has widened and now incorporates listings in suburbs and commutable countryside – this is the latest UK wide trend based on surveys by leading property portals and major real estate agencies. Adopted by many employers, the permanent work from home shift has increased the buyer’s appetite for property within the Greater London region too, a trend likely to last for a considerable time or at least until the demise of the Coronavirus pandemic. The buyer’s needs have changed so flexible living space, more room, outdoor space, and proximity to a local park are as important as the location. In the report of 10 September 2020, The RICS states that the closeness to a green space tops buyer's lists predicting that ‘ the pandemic is expected to cause a lasting shift in the desirability of certain property characteristics, as 83% of respondents (estate agencies) anticipate demand increasing for homes with gardens over the next two years. 79% predict rising demand for those properties near green space, while a net balance of +68% foresee a rise in the desirability of properties with more private / less communal outside space’.

Looking at the foreign investors, the influx of buyers targeting Prime Central London property seems to be steady. Quoting London Estate agencies, the Property Wire analysts predict that 'As 2020 continues and the COVID-19 pandemic plays out, it’s likely that the level of foreign buyer interest in UK property will continue to steadily increase. Overseas investors are becoming more aware of the prime property investment opportunities across the UK'. As well as rushing to save from the Stamp Duty Tax holiday, this market section is rushing to avoid the additional 2% SDLT surcharge for overseas-buyers due to be implemented from April 2021.

The latest, data from the HM Land Registry for June ’20 (published 16/09/’20), states that the London house prices have risen 3.6% since May 2020.  According to the report, the average property in the UK in June stands at £237, 834. The next HM Land Registry UK House Price index report is due 21 October 2020.

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Sources

RICS

Property Wire

Forbes