Will The UK Housing Market Be Affected By The End Of The Current Terms?

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Will The UK Housing Market Be Affected By The End Of The Current Terms?

March 2021 saw the largest increase in house prices since 2007, being 10.2% in the yoy period. Economists say that this has been instigated from a number of factors including new government guarantees for mortgages, which offers first home buyers the opportunity to purchase houses with 95% mortgages. This stimulus scheme will continue till the end of 2022.

The ideal surrounding properties in the UK is also shifting somewhat, with homes now boasting green gardens, plenty of space to work from as well as to socially distance enough to stay safe from being sought after. Last summer Chancellor Sunak introduced the stamp duty holiday and this has also contributed to the market surging to this effect. This tax holiday which has ended in Scotland will continue in England and Northern Ireland will June 30, where houses up to five hundred thousand pounds in price value will not be charged tax on the sale price. Come 30 September it will return to it’s regular level cap of threshold price of one hundred and twenty five thousand pound. This year it is expected that 461 billion pounds is the total value of houses sold in the UK just this year.

The housing market is booming and this trend is being seen in other developed economies such as Australia and the USA too. From 2020’s stats a jump of 46% is likely. The demand for the family style houses is obvious with sales being easier to achieve in a shorter time in Wales, Yorkshire, north west England including the Humber. The average house price in the UK in March 2021 was 265 pounds stirling, which sees an increase of 24 thousand pounds since the same period last year. However, it is taking close to two months to sell inner city London properties which is approximately two weeks longer than it was taking roughly three years ago in the period between 2017-19.

This is putting the buyers in the power for the London properties with price drops recorded in the City of London by 2.5% compared to the year ago period. Other boroughs in London are also seeing price drops such as Kensington and Chelsea both down 1.7%, Westminster down 2.2% and Hammersmith and Fulham down as well 1.4%. Real estate agents in the UK are going to be busy with 2021 set to be the busiest one in fourteen years.

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