Increased mortgage approvals and record low interest rates keep the market growing
The end of the Stamp Duty holiday has been extended until 30th September 2021 (although from 1st July, the 0% tax band will be reduced from £500,000 to £250,000). The Stamp Duty holiday has undoubtedly added extra momentum to the market, but all regions have seen far greater average price increases than the average savings in stamp duty. The Government’s pledge to help more people onto the property ladder is poised to keep the market growing.
The increasing number of mortgage-related products being brought to market and the accelerating amount of both applications and approvals being seen across the UK are strong indicators of demand. This is exciting news for those currently looking to buy or sell a home.
Asking prices continue to rise
According to Rightmove’s House Price Index for June, the average asking price is now at a record high across Britain and property prices are continuing to increase at a rate not seen at this time of year since 2015. For the third consecutive month, the national average has been pushed to a record high of £336,073.
In Wales, prices are up by a massive 14.6% since March 2020 and buyer demand has jumped up by 44%. There’s also great news for those considering selling in Devon and Cornwall as prices have risen by 11.4%, with properties being sold at the fastest rate since local records began.
Demand is notably fierce in the higher end of the market, specifically for detached properties with four bedrooms or more. The number of properties sold for over £500,000 was up by 49% in May 2021 compared to May 2019.