Many sectors have suffered dramatically during the past 12 months, but one that continues to bounce back stronger than before is the housing market. Recent figures by Rightmove’s monthly House Price Index show that, even during a pandemic, new records have been set within the industry, with the average price of property jumping up by 1.8% (£5,767). With the market continuing to experience extremely high buyer demand and an appetite for larger homes, one thing is true — confidence in the market continues to be at an all-time high.
It is no surprise, really. With people having spent more time in their homes in the last year than ever before, we’re experiencing a growing trend of people looking for more space and better surroundings, leading to frequent moving becoming the norm. This need for ‘better’ has seen a boom across the industry, so much so that the prices of homes in the north of the country have seen double-digit increases, with prices up by 11.1% in North West and 10.5% in Yorkshire. This section of the country has had the greatest potential for growth for many years now, and the change in buyer’s needs (more working from home, less commuting), means a spotlight has been shone on this part of the market.
Many will look at the extension of the stamp duty holiday, paired with the continued low costs of borrowing as the real savior for keeping confidence in the housing market. In some ways, they may be right, but it is clear that confidence has been there long before this. With Nationwide reporting that three-quarters of the homeowners they surveyed at the end of last month saying they would have moved even if the stamp duty hadn’t been extended, we have to appreciate that the market is already in an extremely buoyant place.
On that same thread, 25% of homeowners surveyed by Nationwide said that they were either in the process of moving or considering a move as a result of the pandemic, the expectation is that the industry will continue to accelerate in the coming months. If the month-on-month house prices remain flat, it is thought we might even see its annual rate of growth reach double digits — a continued welcome boost to our economy.”
‘Buyer demand remains high across the housing market’ first appeared on my Medium profile.