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The Budget stimulated an 80% rise in buyer demand

The recent Budget stimulated an 80% rise in buyer demand for property compared to the four-year average, according to Zoopla’s monthly House Price Index.

Despite this, the supply of new homes is down 13%, compared to the 2020 average.

Zoopla outlined that the volume of homes for sale is expected to recover as the COVID-19 vaccination programme continues to gather pace and the Prime Minister’s roadmap out of lockdown comes into effect.

From a national perspective, average home values are up 4.1% since the start of the first lockdown, amounting to £8,907 on the year or £750 per month.

While annual house price growth is down slightly from 4.4% last month, this marks the fourth consecutive month of house price growth over 4%.

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Regionally house price growth in the Midlands, North of England, Wales and Scotland are at an almost 10-year high, fuelled by the relative affordability in these markets.

At a city level, Liverpool and Manchester continue to show the strongest levels of annual house price growth, up 6.6% and 6.4% respectively.

Sales agreed are up 5.3% compared to the same period in 2020, and the average time to sell a property in the UK has fallen by nearly a week across the UK excluding London, down from 50 days in 2020 to 44 days.

In contrast, London is the only region in the UK where properties are taking longer to sell.

The North East and the North West have recorded the highest reduction in time to sell on a regional level, falling by 17 days and 12 days, respectively.

At the same time, the North West and Yorkshire and the Humber are the fastest moving markets in the UK, with sales agreed on properties in an average of just 38 days from the point of listing.

The index also revealed that houses are selling three weeks faster than flats.

The lockdown-led ‘search for space’ means houses are taking an average of 42 days to go from the point of listing to sale agreed, this compares to 62 days for a flat.

Demand for three-bed homes rose by 30% in the week after the Budget, in relation, the average value of a house has risen by 4.9%.

Meanwhile, the average price of a flat has increased by 1.9% over the same timeframe.

An estimated 130,000 properties for sale in England will be stamp duty free for another six months following the Budget which will amount to £123m saved in tax.

Overall, Zoopla anticipates that more than half a million buyers this year will benefit from some level of stamp duty relief.

Read about the UK Housing Market via our Specialist Residential & Buy to Let Division

David Ross, managing director of Hometrack, said: “The 95% LTV mortgage guarantee scheme and the stamp duty extension outlined in the Budget have led to a spike in buyer demand, which was up 24% in the days following the announcement.

“The stimulus provided by the mortgage guarantee scheme will likely promote a similar increase of uptake of higher equity loans from the knock-on in demand up the property chain.

“With time to complete standing at around four months, buyers in the North of England look set to benefit the most – with two-third of local stock under £250,000 in value, and therefore always exempt from stamp duty.

“While prospects for the wider housing market have improved on the back of the Budget, the post-lockdown path to the full reopening of the economy and unwinding of support measures will still have a big impact.

“Therefore, we still expect house price growth to moderate later in the year, but overall transactions look set to get an additional boost from the stamp duty measures.”

Nigel Purves, chief executive of Wayhome, added: “With a full year of lockdown behind us, there has been increased momentum in the housing market ahead of the busy Spring period.

“Indeed, house prices were up by 4.9% year on year and flats were also up by 1.9% over the same period.

“Over the coming months with offices, shops and restaurants set to reopen, we may witness some individuals turning back to connectivity and convenience, while others continue their ‘search for space.

“While the introduction of 95% loan-to-value mortgages may bring hope to those wanting to step foot on the ladder, affordability remains a serious problem.

“There are many households whose incomes still won’t meet the criteria for mortgage approval, despite their ability to consistently pay rent on the kind of homes they would like to buy.

“Going forward, the government needs to work with the property industry to better support alternative routes to help ‘reluctant renters’ achieve homeownership.”

By Jake Carter

Source: Mortgage Introducer

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Hereford sees a surge in buyer demand as housing market reopens

HEREFORD has been named as the city leading a bounce back in buyer demand following the reopening of England’s housing market, analysis has found.

Property website Rightmove based its findings on the volumes of house hunters phoning and emailing estate agents about properties for sale in the first two weeks of June, compared with before the lockdown in the first two weeks in March.

Across England generally, buyer demand was up by nearly a third (32%).

The housing market in England started to reopen from May 13, with serious buyers now able to undertake physical viewings once more.

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Hereford topped the list, with demand surging by 77% when comparing the first two weeks of March with the same period this month. The average asking price in June, according to RightMove, was £244,440.

It was followed by the North West towns of Wigan, with a 71% uplift and an average asking price of £165,448, and Rochdale, where the average asking price was £179,329, with a 66% increase.

Steven Thomas, Director of Watkins Thomas in Hereford, said: “Our market has been very busy since we were able to reopen in May.

“There’s been a shift in the type of buyer since before lockdown. We were dealing with a lot of first-time buyers with limited deposits in March, but now it’s families looking for more space.

“It’s a bit like what we see in January – families spend Christmas sitting down and talking about their next move and they get going in January. We’re now seeing people, having sat down during lockdown and reviewed what they’re looking for, jumping into action in June.

“June and July is often quieter for us because this group of buyers are usually away, so that’s why we’re seeing a surge of late spring buyers.

“There’s also a lot of real interest coming from the South East, from people in their 50s and 60s realising they can get a lot more for their money and can live in an area with acres of open countryside.”

By James Thomas

Source: Hereford Times

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Buyer demand is increasing in parts of the UK, analysis suggests

The latest industry data shows that buyer demand in the UK in the second quarter of 2019 was at 42.3%, a 1% increase on the previous quarter, with London seeing an increase of 1.4% so far this year.

The analysis, using data from the major property portals by Springbok Properties shows that the highest level of buyer activity is currently in Glasgow at 60.2%, closely followed by Edinburgh at 57.6%.

Sale is the most in-demand area in England at 57.3%, followed by Bristol at 56.6% while Worthing near Brighton recorded the biggest uplift in buyer demand since the start of the year with a 7.1% increase.

York at 6%, Woking at 5.2%, Mansfield at 5%, Basingstoke, Bristol and Exeter are all at 4.6%, St Helen’s at 4.4%, Southport at 4.2% and High Wycombe at 4.1% are also locations with some of the biggest increases in buyer demand.

Bexley remains the most sought after borough in London for buyers, along with Waltham Forest, Barking, Sutton and Havering while Redbridge recorded the largest uplift quarter on quarter at 5.4%, with Sutton and Waltham Forest, seeing some of the largest increases in demand.

Shepherd Ncube, chief executive officer of Springbok Properties, believes that buyers are getting bored of Brexit and pushing on with sales but he pointed out that the resurgence remains largely refined to the more affordable cities where home owners have seen their property potential decline at a more marginal rate, and as a result, they are happy to sell even if it means adjusting their asking price expectations.

He added that Worthing is benefiting from the ripple effect of buyers looking outside of Brighton. ‘House prices in Brighton have become inflated due to the ability for buyers to work in the city by week and spend their weekends at the seaside. Of course, while it remains more affordable now, an influx of buyer demand will always bring an uplift in prices,’ he said.

Source: Property Wire