The Office of National Statistics has reported a national 8.9% rise in house prices to the end of April 2021
The Times, reporting on this on 17th of June, stated in an article by their Economics Correspondent, Gurpreet Narwan:
“The property market has enjoyed a stellar year of growth, even though the broader economy suffered a record drop in output. A surge in demand for bigger homes away from cities fuelled the market, as did the chancellor’s decision to cut stamp duty on the first £500,000 of a property’s value.”
Zoopla’s Head of Research Points to market trends
Grainne Gilmour, Head of Research, for Zoopla, identifies why the property market has performed so strongly over the last 12 months, since the start of the pandemic
- The pandemic has actually triggered a lot of the activity in the housing market. Buyer demand has been strong since the end of the first lockdown last year, as households reassess where and how they are living.
- The Government has also introduced the 95% mortgage guarantee, which means there’s a wider range of home loans for first-time buyers with a small deposit to choose from.
- Many people feel they need more space, particularly families and those for whom working from home is likely to become the norm.
- At the same time, many older homeowners are also re-evaluating their housing needs and moving for the first time in many years.
What now the stamp duty deadline passes? What does Grainne think will materialise?
“But even after this deadline passes, homeowners looking to move up or down the housing ladder will still not pay stamp duty on the first £250k of a purchase up until the end of September, because of the tapering off of the stamp duty holiday.
“First-time buyers will also benefit from stamp duty relief on the first £300k of homes costing up to £500k, as they did before the stamp duty holiday was introduced.”