The UK property market has certainly started the year on a strong note, with sales agreed in January 2021 reaching a whopping 18.3% above the 10-year average. This is great news for both buyers and sellers, as it indicates a healthy and thriving market.
According to data from Rightmove, the average number of sales agreed per estate agent branch in January was 12, the highest number recorded for this month since 2007. This surge in activity is a clear sign of the resilience of the property market in the face of the ongoing pandemic and economic uncertainty.
One of the main factors contributing to this strong start is the pent-up demand from last year, when the property market was forced to a standstill due to lockdown restrictions. With the easing of restrictions and the successful rollout of the COVID-19 vaccine, buyers and sellers are now feeling more confident to enter the market.
The stamp duty holiday, introduced by the government in July 2020, has also played a significant role in boosting the property market. This temporary tax relief, which has been extended until the end of June 2021, has encouraged many buyers to make their move and take advantage of the potential savings.
But it’s not just the stamp duty holiday that is driving the market. The pandemic has also changed people’s priorities and lifestyles, leading to a shift in housing needs. Many are now looking for larger homes with outdoor space, as remote working and lockdowns have made us realize the importance of having a comfortable and functional living space.
This change in demand has also been reflected in the types of properties being sold. The demand for houses has increased significantly, with sales agreed for houses being 25.9% above the 10-year average. On the other hand, the demand for flats has remained relatively stable, with a 3.7% increase in sales agreed compared to the 10-year average.
The strong start to the year has also been observed across all regions of the UK, with the East Midlands and the North East leading the way with a 27.2% and 26.4% increase in sales agreed respectively. London, which has been struggling in recent years, has also seen a significant improvement with a 13.8% increase in sales agreed compared to the 10-year average.
Experts predict that this positive trend will continue in the coming months, with the stamp duty holiday extension and the gradual lifting of lockdown restrictions. However, there are concerns about the potential impact of the end of the stamp duty holiday and the economic fallout from the pandemic. It is important for buyers and sellers to remain cautious and seek professional advice before making any decisions.
In conclusion, the UK property market has started the year on a strong and positive note, with sales agreed well above the 10-year average. This is a clear indication of the resilience and adaptability of the market, as well as the determination of buyers and sellers to make their move despite the challenges. With the ongoing support from the government and the successful rollout of the vaccine, we can expect to see a continued strong performance in the property market in the coming months.
