The UK Residential Market Survey is published monthly and is used by the government, the Bank of England and other key institutions, including the IMF, as an indicator of current and future conditions in UK residential sales and lettings markets. The July 2021 publication states; “[These] results signal a slightly softer month for new activity across the housing market, which is perhaps unsurprising following the start of the phasing out of the Stamp Duty holiday from the end of June. Even so, the lack of stock available at present continues to underpin house price inflation, with the headline metric on prices showing minimal signs of easing over the latest survey period.”
The North East has experienced consistently high levels of demand across all price points in the post-pandemic market, including seven figure price points – which historically haven’t been the fastest moving in the region. Each of our branch network offices have reported significantly quicker sales of the stock at all levels, with many homes selling in excess of asking prices, and heightened demand for larger more expensive homes – with Bradley Hall Gosforth, for instance, recently selling a home marketed at £3,000,000 within just four weeks.
Many homebuyers are moving to acquire more space – having realised the shortcomings of their existing accommodation when ‘locked down’ into their homes amid pandemic restrictions. With home and hybrid working, many require more room and separate office space to enable a work-life balance. This shift in working arrangements has also allowed people to choose the location of their new home more freely, with many moving ‘further out’ to enjoy open spaces and the ability to get more for their budget.
The freedom to move away from major cities has also impacted London’s monopoly on high value homes. The North East has experienced a 11.8% growth over the past year, in comparison to 5.3% in London. Sales above £1m have dropped by around 10% in London, while sales above £1m elsewhere have grown by almost the same amount. Property in the North East is in high demand – and in our experience more buyers than ever coming from other areas of the UK to set up home in areas such as Durham and Northumberland.
Search Acumen has reported that almost one in five home purchases across England and Wales are now valued at £500,000 or more. This compares with just 11% in 2018. Sales have been boosted to record levels and UK house prices are rising at a rate of 10% annually. Properties priced over £1m make up 3% of sales, up from 2% in 2018.
Changes in spending habits certainly increased the ability to save and spend on property. The Commons Library Briefing reports; “Overall, household savings have increased since the pandemic began. The Bank of England estimates that households built up more than an extra £125 billion in savings from March 2020 to November 2020, and this increased to over £200 billion by June 2021.” This has most definitely allowed many people to prioritise moving home, despite the rise in house prices.
Notwithstanding the end of the SDLT holiday, we continue to experience a rise in house prices due to supply scarcity, low interest rates, and government support for homebuyers. For the time being, while there was an inevitable tailing off in frenzied demand after the higher-tier Stamp Duty holiday ended, those who are listing are still selling quickly and for healthy prices, and there are no immediate signs of house price growth slowing.
Now is a great time to take advantage of low supply and heightened demand by selling, but it’s a double-edged sword, homesellers may enjoy the frantic bidders competing for their home, but when looking to secure an onward purchase should expect a similarly competitive environment, with properties frequently achieving higher than asking prices.
To speak to a property expert about selling your home please visit www.bradleyhall.co.uk to find your nearest branch.
