Monitoring the housing market is very important for many, particularly those doctors and dentists who are looking to purchase their first home or who are investing in buy-to-let properties. Our monthly Property Price Update gives you a summary of what the experts are saying.
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.
What’s happening in the UK Property Market?
Annual house price growth rebounded last month, skyrocketing to 7.1% from 5.7% in March. The average house price in April was £238,83 up 2.1% from the previous month’s £232,134.
The welcome surge might have something to do with the extension of the stamp duty holiday announced in the Budget. Even though the stamp duty holiday might account for some of the activity last month, three quarters of homeowners surveyed said they were planning to move regardless of the extension.
Looking ahead
Over the next six months or so, housing market activity will likely thrive due to the stamp duty extension and extra government support for the labour market.
Many people also have been able to save during the pandemic, and have more to put toward a deposit on a new home. A more sizeable deposit opens up better mortgage deals. Plus, people who want to move because of COVID-related reasons are still out there looking for homes and with borrowing costs so low, it’s a great time to do it.
The recovery measures announced in the budget, namely the furlough scheme and stamp duty holiday extensions, plus the new mortgage guarantee scheme should all contribute to a lively next few months in the market.
The long term outlook for the market is far more unpredictable. If we continue the positive trajectory in the recovery efforts and if the demand for properties with access to outdoor space and more space in general still fuel house hunts after the pandemic, then activity might still be pretty strong.
Unfortunately, experts expect unemployment to rise towards the end of the year, and a general weakening of the market after government support ceases, so it’s possible activity will drop, perhaps suddenly.
Check back next month
There’s never been a more important time to keep an eye on the market and the changes from month to month, so be sure to check back monthly for all the updates on the UK property market.
Figures quoted from Nationwide House Price index April 2021.
Mortgages for Doctors and Dentists
Always remember to visit our site monthly for your regular update on the nation’s property prices.
If you’re planning to buy or sell property this year contact an advisor for personalised advice.
At Dental & Medical Financial Services, our experts are dedicated to helping our clients select the right mortgage deal for your needs. If you’re ready to take the first step toward home-buying, get in touch with us today.