A variety of articles in respect of the property market in Property Investor News this month that are actually highlighting how difficult it is to predict what is coming in 2021. Firstly, Aldermore Bank report that nearly half of first time buyers are decided to delay any purchase by almost a year as a result of the Covid Pandemic. With people looking for a fast sale to benefit from the stamp duty holiday, this is dreadful news. In addition, this sector also expresses concern for their financial security which further exacerbates the problem. This is the lifeblood of the property market and possibly points to a slowdown in the New Year. This would hint at a growth in the rental sector at a time when the Government is actively discouraging Landlords, a dilemma that needs to be addressed.
Not surprisingly the Ministry of Housing points to the lowest level of new build homes started or completed between April and June this year is the lowest since 2000. It will not take Sherlock Holmes to work this one out, the only surprise is that it is not the lowest ever given the country was mostly closed for business during that period! The last six quarters have shown a decrease in production of new homes which highlights the chronic shortage of housing in the UK is not ending any time soon. Given the Governments attitude to private landlords the reality is it will get much worse before it gets better.
On the plus side of the news NAEA Propertymark report that 13% of properties sold for more than their asking price in August, the highest level since 2015. August house sales were 33% up on the same month last year as home buyers play catch up after lockdown and take advantage of the Stamp Duty holiday. This links to a previous article where the source stated that properties in a distressed state will not sell easily, so if you invest time to make your home look desirable then the return on that investment will be significant.
If you are looking to take advantage of the stamp duty holiday and want to move quickly on a sale then contact us for a fair price for a fast sale.