Despite the feeling that 2020 has kept us all in limbo while coronavirus has hit to the global economy, UK house prices have actually been on the rise. It seems like the property market is heating up now that summer is on the horizon.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
According to Nationwide, UK house prices rose by 7.1% year on year and the average property price rose to £238,831.
Some hope for homebuyers
However, it’s not all bad news for homebuyers trying to afford a new property. As lockdown measures enabled many to ramp up their savings, prospective homebuyers were able to make a dent in their deposit savings goals. In the past, lots of new homeowners received help from their family to top up their deposit, so if they can get this help on top of savings, they’re sure to have sufficient deposits.
Plus, with government schemes like the Stamp Duty (SDLT) Mortgage holiday, first-time buyers have real hopes of getting on the property ladder. The boost in housing market activity from the SDLT holiday is expected to last another 6 months or so, according to experts.
What’s on the horizon for housing stock?
Current homeowners also experienced the desire for greener pastures. Pandemic conditions led many people to re-evaluate what’s important in a home for them and access to outdoor space skyrocketed to the top of homebuyers’ priority list.
Unfortunately, because the demand for properties surpassed the supply of available homes on the market, UK house prices continue to rise. If this trend continues, it might spark a sort of “silly season” and the market will become flooded with overpriced and underwhelming properties selling like mad. In some regions, it has already begun, with many people clamouring to get into new builds before they’re even on the market.
Let’s review your goals.
If you’re wondering what this news might mean for your home buying goals. We can help review your financial plan and revise if necessary and advise on the best approach to your property search. Get in touch with us today.
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