The UK property market has been a hot topic in recent months, with many wondering how it would fare in the midst of a global pandemic. However, the latest data shows that the market has not only weathered the storm, but is actually performing better than ever before. According to recent reports, YTD (year-to-date) sales agreed are 23% higher than pre-pandemic levels, indicating a strong and resilient market.
This news comes as a welcome relief to many, as the property market is a key indicator of the overall health of the economy. The fact that it is performing well despite the challenges posed by the pandemic is a testament to the strength and stability of the UK market.
One of the main reasons for this strong performance is the stamp duty holiday introduced by the government in July 2020. This temporary measure has provided a much-needed boost to the market, with buyers rushing to take advantage of the savings before the holiday ends on 30th June 2021. This has led to a surge in demand for properties, resulting in the increase in sales agreed.
But it’s not just the stamp duty holiday that is driving the market. The pandemic has also changed the way people view their homes. With many people spending more time at home due to lockdowns and remote working, there has been a shift in priorities when it comes to property. People are now looking for larger homes with outdoor spaces, as well as properties in more rural areas. This change in demand has led to a rise in property prices, with the average UK house price reaching a record high of £252,000 in March 2021.
The strong performance of the UK property market is not limited to a particular region or type of property. In fact, all regions of the UK have seen an increase in sales agreed, with the East Midlands and the North West leading the way with a 30% and 29% increase respectively. This shows that the market is performing well across the board, providing opportunities for both buyers and sellers.
The positive outlook for the UK property market is also reflected in the mortgage market. Despite the economic uncertainty caused by the pandemic, mortgage rates remain at historic lows, making it an attractive time for buyers to enter the market. This, coupled with the stamp duty holiday, has made it easier for first-time buyers to get onto the property ladder.
The strong performance of the UK property market has also had a positive impact on the construction industry. With the demand for new homes increasing, construction companies are seeing a rise in business, providing a much-needed boost to the economy. This is particularly important as the UK looks to recover from the economic impact of the pandemic.
Of course, it’s not all smooth sailing for the property market. The uncertainty surrounding the end of the stamp duty holiday and the potential for a rise in interest rates in the future could have an impact on the market. However, experts remain optimistic about the future of the UK property market, with many predicting a steady and sustainable growth in the coming months.
In conclusion, the latest data on the UK property market is a cause for celebration. Despite the challenges posed by the pandemic, the market has shown its resilience and continues to perform well. The stamp duty holiday and changing priorities of buyers have contributed to the increase in sales agreed, providing opportunities for both buyers and sellers. With the economy slowly recovering, the future looks bright for the UK property market.