We all knew the pandemic would play havoc on house prices, but nearly a year on house prices keep on rising in the UK! Asking prices are at a record high across the UK and the national average has been pushed to a record high of £336,073 (taken from Rightmove’s House Price Index)
Let’s talk about why the prices are on the rise, and what this means for you if you want to move home.
More People Are Wanting To Move – A Record High!
Currently, there are more people wanting to move than homes available on the market – we know this not only from data and stats, but from personal experiences. Homes are selling fast – and they’re selling for the asking price, or sometimes even above for the most desired properties.
If you have a large detached home with a big garden, and a more rural location you have a winner. These homes are in high demand as people are working from home rather than communing to work every day, wanting more outdoor space to enjoy with their families, and have rooms which can be turned into a home office.
Low Interest Rates And 5% Deposits
Record low interest rates have helped more and more first time buyers get on the property ladder, or move to bigger homes which are more expensive due to size and area.
Buyers are offered small deposits with 95% mortgage loans which means it’s easier to save up your deposit and make an offer on the home you’ve had your eye on.
Buyers Are Interested In Countryside Locations
Since the pandemic hit, homes in rural locations have been rising in popularity. Buyers are moving away from busy cities as the work-from-home revolution continues to give families freedom of choice as to where they live. Coastal and countryside towns are more attractive to those wanting a slower pace of life, a community around them, and more nature to enjoy. If you live in a town by the seaside or in the countryside, just have a look at your neighbourhood average price – we can almost guarantee it’s gone up since last year!
Savings On Stamp Duty
Stamp duty tax savings combined with low interest rates means buyers could afford homes at higher prices and upsize or move to a new location.
What If I Want To Move?
If you’re selling your home – great news! The market is moving quickly and if you have a property lined up you’re likely to sell your home within a matter 0f an average 40 days. Ensure your paperwork is up to date, and you’re ready to go as soon as you have an offer you’d like to accept.
If you’re buying a house, you need to be quick. Have a mortgage in principle ready to go, have all your paperwork in order, if you’re in a chain make sure as much of the admin is done as possible and you have a home lined up, and set up alerts to notify you of homes which match your search – when you see one, move quickly as it’s likely to go.
For first time buyers – you can take advantage of initiatives like Help To Buy or First Homes scheme, and remember you don’t pay stamp duty on a house priced at £300,000 or below!