The UK property market has started the year on a strong note, with sales agreed in January 2021 being 18.3% above the 10-year average. This is a promising sign for the real estate industry, which has faced many challenges in the past year due to the ongoing pandemic.
According to data from Rightmove, the average number of sales agreed per estate agent branch in January was 12, which is the highest for this time of year since 2007. This surge in sales can be attributed to the pent-up demand from the previous year, as well as the stamp duty holiday announced by the government.
The stamp duty holiday, which was introduced in July 2020, has been a major driving force behind the increase in property sales. It has provided a much-needed boost to the market, with buyers being able to save up to £15,000 in tax on properties worth up to £500,000. This has not only encouraged first-time buyers to enter the market but has also motivated existing homeowners to move to bigger and better properties.
The strong start to the year is also reflected in the average asking prices, which have increased by 0.5% compared to the previous month. This is the first time in five years that there has been an increase in asking prices in January. The average asking price now stands at £319,945, which is 3.5% higher than the same period last year.
The increase in asking prices can be attributed to the shortage of properties available for sale. The number of properties coming to the market in January was down by 21% compared to the same period last year. This has created a competitive market, with properties receiving multiple offers and selling for higher than the asking price.
The strong start to the year is not limited to a particular region, as all areas of the UK have seen an increase in sales agreed. The North West has seen the highest increase of 26.4%, followed by the East Midlands at 25.6% and the South West at 24.9%. London, which has been struggling in recent years, has also seen a significant increase of 18.4%.
This positive trend in the property market is expected to continue in the coming months, with the stamp duty holiday being extended until the end of June. This will provide a further incentive for buyers to enter the market and will help sustain the current level of sales.
The strong start to the year is also a reflection of the resilience of the UK property market. Despite the challenges posed by the pandemic, the market has shown its ability to adapt and thrive. The shift towards remote working has also played a role in the increase in property sales, as people are now looking for larger homes with more outdoor space.
The increase in property sales is not only good news for the real estate industry but also for the economy as a whole. The property market has a significant impact on the economy, with every property transaction generating revenue for various industries such as construction, legal services, and home improvement.
In conclusion, the UK property market has started the year on a strong note, with sales agreed being 18.3% above the 10-year average. The stamp duty holiday and the shortage of properties available for sale have been the main driving forces behind this surge in sales. With the extension of the stamp duty holiday and the continued demand for properties, the market is expected to remain strong in the coming months. This is not only good news for the real estate industry but also for the overall economy.