How has the property market been impacted after the stamp duty changes?
Mon 16 Aug 2021
A lot of people have been worried about the effect on the housing market after the June 30th changes to the stamp duty holiday. Would the market crash as people abandoned their plans to move now that the savings offered by the original scheme, introduced back in July 2020, were reduced?
Well, the good news is that the market has not fallen over the cliff-edge as some feared. The nil rate of stamp duty still applies to the first £250,000 of a property’s value until the end of September and this has meant that property transactions (and prices) remain buoyant. Last month did see a slight slowdown in price growth, with Nationwide putting the annual growth rate at 10.5 %, down from 13.4% in June. However, they consider this small fall unsurprising, given the record-breaking house price increases seen in the three months from April to June.
Estate agents are reporting high levels of demand, especially for larger homes as the “race for space” continues to fuel market activity. Zoopla reported that demand for homes worth over £250K to be 86% higher than two years ago. However, the supply of homes for sale is lagging a long way behind demand. Zoopla calculated that the total stock of homes was 24% lower over the first six months of 2021, compared to the 2020 average. There is a particular shortage for larger family homes.
Looking forward to the rest of the year, the predictions are that the combination of low interest rates and high levels of demand will continue to support price growth, as buyers look to beat the final stamp duty deadline at the end of September. There is less certainty about what might happen as we move into 2022, particularly if unemployment rises as many people expect. If you are wondering whether to put your house on the market, then now could well be the perfect moment.Contact our team on 01788 551111 if you're thinking about selling your home and would like a property valuation or click here for an instant valuation.