The UK property market has started the year on a positive note, with sales agreed in January reaching a whopping 27% higher than pre-pandemic levels. This is great news for both buyers and sellers, as it indicates a strong and resilient market despite the challenges of the past year.
According to data from property website Rightmove, the number of sales agreed in January was the highest for this time of year since 2007. This surge in activity is a clear sign of the pent-up demand that has been building in the market, as people are eager to make a move after months of uncertainty.
One of the main drivers of this increase in sales is the stamp duty holiday, which was extended by the government until the end of June. This has provided a much-needed boost to the housing market, as buyers can save up to £15,000 on their property purchases. With the deadline fast approaching, it is no surprise that many buyers are keen to take advantage of this opportunity while they still can.
But it’s not just the stamp duty holiday that is driving the market. The pandemic has also changed the way people view their homes, with many reassessing their living spaces and looking for properties that better suit their needs. This has led to a surge in demand for larger homes with outdoor spaces, as people prioritize comfort and functionality in their living spaces.
Another contributing factor to the strong start of the UK property market in January is the low interest rates. With mortgage rates at historic lows, buyers are able to secure better deals and make their dream of homeownership a reality. This has also encouraged many first-time buyers to take the plunge and enter the market.
The increase in sales agreed has also had a positive impact on property prices. According to Rightmove’s data, the average asking price for properties coming to market in January was 0.5% higher than the previous month, and 3% higher than the same time last year. This shows that the market is not only active but also resilient, with prices holding steady despite the challenges of the pandemic.
The surge in sales has also been felt across all regions of the UK, with some areas seeing even higher increases. In the North West, sales agreed were up by 56% compared to the same time last year, while in the South West they were up by 53%. This is a testament to the strength and diversity of the UK property market, which continues to thrive despite the ongoing pandemic.
Experts predict that this positive trend in the property market will continue in the coming months, with the stamp duty holiday and low interest rates providing a strong foundation for growth. However, it is important to note that this surge in activity may not be sustainable in the long term, as the stamp duty holiday comes to an end and the full economic impact of the pandemic is felt. Therefore, it is crucial for buyers and sellers to act quickly and take advantage of the current market conditions.
In conclusion, the UK property market has started the year on a high note, with sales agreed reaching levels not seen since before the pandemic. The stamp duty holiday, low interest rates, and changing attitudes towards homes have all contributed to this surge in activity. As we navigate through these uncertain times, the resilience and strength of the property market give us hope for a brighter future. So whether you are a buyer or a seller, now is the time to make your move and take advantage of the opportunities that the market has to offer.