What’s driving property prices?
Asking prices continue to climb, with several key reasons to explain why this is happening after the emergence of a global pandemic.
A record number of people are looking to move
If you cast your mind back to a pre-pandemic time, the property market was faced with extraordinary pent-up demand due to Brexit concerns, as buyers and sellers put their plans on hold.
Before this pent-up demand could be fully alleviated, COVID-19 made its way across the globe in spring 2020, shutting down the property market along with most other commercial sectors.
The government were quick to launch schemes and support to encourage a return of activity, with tremendous success last summer, mainly driven by the extended stamp duty holiday.
Following all of these delays, demand for homes continues to dominate market headlines.
Over 180,000 properties were listed on Rightmove in the last month, with homes selling above asking price doubled from previous figures.
Stamp duty savings
Ending on June 30th, the stamp duty holiday caused a market rush, which meant that asking prices rose at an incredible rate.
Having extended the initial savings period once already, the government introduced a tapered end to the SDLT holiday, taking us up to September 2021 with £2,500 available on the first £250,000 of a property.
Record low interest rates
With interest rates low, more people have been enticed to upsize to bigger, more expensive homes.
If you’re looking to take advantage of better rates, we’d recommend speaking to a mortgage professional about your options.
Looking to sell? Book a valuation today.
This article was originally published by BriefYourMarket and is reproduced here with their permission.
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