“To say estate agents are busy at the moment would be an understatement,” says Alasdair Morrison.
“Here at Alasdair Morrison & Partners we have seen an unprecedented uplift in buyer demand over the past three months in Newark and Southwell.
“Rightmove tells us that buyer enquiries are up 14% annually and sales agreed are just 5% below this time last year - which is pretty remarkable under the circumstances. Considering the housing market was stagnant for most of 2019, the last quarter’s 8.5% increase in buyer demand is extraordinary and has contributed to an annual 5% uplift in house prices. This will be a relief for any homeowners who were wondering if last year’s house price plateau was here to stay. Bizarrely, Covid-19, along with some government intervention has certainly overcome that, at least for the time being, because when activity rises, house prices follow.”
Alasdair continues:
“Nevertheless, research from PwC suggests that up to 20% of people say they are now less likely to purchase a home over the next couple of years compared to pre-Covid-19 figures, due to the ongoing pandemic and economic uncertainty. This is partially balanced by the 10% of people who say they are now MORE likely to move than before, possibly due to the stamp duty holiday worth up to £15,000.
“Don’t forget that maximum £15,000 SDLT saving is on a £500,000 property – the average saving is about £4,500 but only until March next year when the concession is due to expire. So if you’re thinking of moving next year, then our advice is to bring it forward and take advantage of the savings.
“Interestingly, the first time buyer sales agreed figures are up 36%. And there is further good news for first time buyers since the government announced this week that it is planning to help young people become ‘Generation Buy’ by helping them onto the property ladder with just a 5% deposit. It’s essential not only to power the property market from below, but it’s also good for society to make home ownership available to all.
“Although buyers are certainly buying, a potential difficulty is the length of time it is taking for local authority official searches to come back due to Covid-19 related staffing issues. Some are taking up to two months, which could really frustrate buyers hoping to take advantage of the stamp duty holiday. So a key word of advice here is that if you are a seller – order the searches yourself – even before a buyer is found – it could save you your sale. Please feel free to speak to any of our staff about how to do this.
“On the investment side, landlords will be pleased to hear that, according to ARLA, the number of new prospective tenants registering, is the highest on record with over 100 applicants per branch, breaking the last record set in 1997! Average tenancy duration is also at an all-time high, with tenants staying in their properties for an average 21 months.”
Alasdair finishes: “If you’d like any advice as to how the current climate could affect your moving or investment plans, please don’t hesitate to contact us on 01636 700888 or 01636 813971 for a free no obligation market appraisal. We’re here to help you get moving.”
