Well, it’s been an interesting run up to the end of the Stamp Duty holiday. The first deadline of 30 June came at a pace followed quickly by the next deadline of 30 September. Many conveyancers are only now catching their breath and hoping for a holiday themselves.
The housing market has seen record-breaking numbers over the last year so this begs the question, what will happen next?
It’s a question most economists and other experts like to avoid. We live in unprecedented times. While the stamp duty holiday may have super-charged the housing market, pent up demand played more than a part in the estimated 1.5 million property transactions carried out in England and Wales this year.
Housing market post-stamp-duty holiday
With the UK average house price now £258,000, the furlough scheme coming to an end, rising energy costs, and the end of the stamp duty holiday, many fear the housing market will go from boom to bust. Early signs suggest this is not the case. While house price growth slowed in September to 0.1 per cent, areas of the country, particularly the Northwest, still appear to be an active market.
Government schemes and no stamp duty on properties up to £300,000 for first time buyers are helping to keep the market afloat.
Borrowing for the moment is cheap although economists are keeping a watchful eye on interest rates in light of rising inflation. However, the Bank of England’s monetary policy committee believes the higher rate of inflation (around 4 per cent) will be short-lived as it is driven by high energy costs rather than rising wages.
Even if the government impose another lockdown this winter, the property market is likely to stay open. Not all areas are created equal however, with coastal regions such as Southport seeing the cost of housing rising higher than elsewhere as buyers look to move to areas with more accessible open space.
If the market continues to be driven by the desire to move out of our lockdown homes, then properties with gardens, good broadband, and room for a home-office will continue to sell well.
If you are buying or selling a home in Southport, contact Southport Conveyancing Solicitors, Breens Solicitors on 01704 532890 or firstname.lastname@example.org for a free, no obligation quote for conveyancing.