Despite the property Market coming to a standstill in Q2 of 2020, figures released by HM Land Registry shows that the average house price in the UK increased by 8.5% in the year to December 2020.
The highest increase (11.2%) was in the North West, whilst the lowest price increases were in London (3.5%). There were a lot of people waiting for a property crash as a result of the pandemic, however the Stamp Duty holiday provided a much needed stimulus when the markets reopened. Since the summer of 2020 demand has been consistent, and strong demand causes prices to rise. The closer we’ve come to the March 31st deadline, the more transactions that seem to be taking place. Any property lawyer, broker or valuer will tell you they’re currently inundated with transactions.
Personally I’ve seen more activity in this space over the last 6 weeks than I did for most of 2020. Some Mortgage providers have also reinstated their 90% mortgages, in addition to very low interest rates. So buyers have the ability to put down 10% deposit on a property and pay no Stamp Duty on homes up to £500K. That’s an attractive proposition for alot of people.