The UK property market has been a hot topic in recent months, with many wondering how it would fare in the face of the ongoing pandemic. However, recent data has shown that the market is not only surviving, but thriving, with sales agreed in 2021 already 23% higher than pre-pandemic levels. This is a clear indication of the resilience and strength of the UK property market, and a positive sign for both buyers and sellers.
According to data from Rightmove, the UK’s largest property portal, the number of sales agreed in the first quarter of 2021 was 23% higher than the same period in 2020, and a staggering 44% higher than the first quarter of 2019. This is a significant increase, especially considering the challenges faced by the property market during the pandemic. It also shows that the demand for properties in the UK remains strong, despite the uncertain economic climate.
One of the main reasons for this surge in sales is the stamp duty holiday introduced by the government in July 2020. This temporary measure, which waives the stamp duty on properties up to £500,000, has been a major incentive for buyers, resulting in a flurry of activity in the property market. The holiday has been extended until the end of June 2021, providing further support to the market and giving buyers more time to take advantage of the savings.
Another factor contributing to the strong performance of the UK property market is the shift in buyer preferences due to the pandemic. With more people working from home and spending more time indoors, there has been a growing demand for larger properties with outdoor space. This has led to an increase in sales of houses and properties in suburban and rural areas, as buyers look for more space and a change of scenery.
The rise in sales has not been limited to a particular region or type of property. In fact, all regions in the UK have seen an increase in sales agreed, with the East Midlands and the North West leading the way with a 35% and 33% increase respectively. This shows that the property market is performing well across the country, providing opportunities for both buyers and sellers in different areas.
The positive performance of the UK property market has also been reflected in the house prices. According to the latest data from the Office for National Statistics, the average house price in the UK increased by 8.6% in the year to February 2021. This is the highest annual growth rate since October 2014, and a clear indication of the strong demand for properties in the country.
The increase in house prices has been particularly beneficial for sellers, who have seen their properties sell for higher prices than expected. This has also led to a rise in the number of properties coming onto the market, as sellers take advantage of the favourable conditions. This increase in supply has helped to balance out the market and provide more options for buyers.
The positive performance of the UK property market is not only good news for buyers and sellers, but also for the economy as a whole. The property market is a major contributor to the UK’s GDP, and a strong performance can have a ripple effect on other industries. It also provides job opportunities in the construction and real estate sectors, which have been hit hard by the pandemic.
In conclusion, the UK property market continues to defy expectations and perform well despite the challenges posed by the pandemic. The increase in sales agreed and house prices is a clear indication of the market’s resilience and strength, and a positive sign for the future. With the stamp duty holiday extended and the demand for properties remaining high, the UK property market is set to continue its strong performance in the coming months.