What Has Happened to The Property Market?

July 19, 2021

Rewind a couple of years back and the focus was on Brexit which caused the property market to become somewhat stagnant. Then, as if things weren’t uncertain enough, the global pandemic we all know as Covid-19 consumed our focus. We were all confident that the property market and house prices were set to return to normal. Then overnight, as a nation our priorities changed from what house we would like to live in to ‘where can we find some toilet roll?!’

However, the property market took an unexpected turn. From record low movers in March 2020, to a stampede of demanding , pushing movers. Prices soared to record highs in March 2021 and the question lingering on everyone’s minds remains ‘why, what’s changed?’

“Annual house price growth rises 10.9%, the highest level in nearly seven years”

Nationwide, House Price Index May 2021

In short, a lot has changed. Our day-to-day routine and circumstances was flipped upside down as a result of the pandemic. As a nation of homeowners, we reassessed what we needed from our homes. Suddenly, the city life became less desirable. Working from home, or being furloughed until further notice became our new normal.

Interest rates are currently at a record low and the lockdown has caused a backlog of demand. Many of us homeowners want or need bigger homes and bigger gardens. This demand mixed with a stamp duty holiday deadline created an incentive for movers and buyers to act.

House Prices Skyrocket

This surge in property demand resulted in the prices skyrocketing by 10.9% on average. Buyers on the hunt for a new home before the end of the stamp duty holiday were already out of pocket due to the rapid rate in which the house prices were increasing.

Sadly we cannot see into the future and predictions are hard to make with the remaining uncertainty as we near the end of the Covid-19 restrictions (hopefully!). However, the data suggests there is an all-time low in the properties available and the buyer demand remains strong.

Are you thinking of selling your home soon?

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