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With the housing market seeing an increase in property prices at their fastest rate in five years after the Stamp Duty Holiday was introduced, many are wondering if they have potentially left it too late to sell their property now that the initial phase of the Stamp Duty Holiday has ended.
The average house price has increased by almost £20,000 since the pandemic hit over a year ago, and doesn’t show any signs of slowing down, at least for now. Provisional data from HM Revenue and Customs (HMRC) shows that there were 114,940 sales in May.
2021 is certainly a sellers market, and isn’t too late to sell your property.
Should You Sell Your Property?
If the price of your property has increased, now may be the best time to put your house on the market. It is important to consider that purchasing a new property will come with potentially the same level of increase, but may potentially put you in a stronger position to obtain a more-affordable mortgage.
The sudden demand for properties has resulted in a dispensation between the buyers and sellers market – the rapidly increasing demand for properties and lack of new properties that are being put up for sale is potentially creating a high level of competition for homes in the most sought-after areas. Many houses are being sold quickly for over the asking price.
The new government mortgage scheme launched in April 2021 allows first-time buyers the chance to get on the property ladder with just a 5% deposit. (LINK TO 95% MORTGAGE SCHEME POST HERE ), and while the first phase of the stamp duty holiday has ended, the stamp duty nil band rate is set until the 30th September at £250,000 and will then return to £125,000. Opportunities to save during lockdown have also provided some first-time buyers with the ability to build up their deposits at a quicker rate.
The numbers of mortgage rates available, while still not up to the levels before the pandemic, are also beginning to increase again, with larger deposits attracting lower rates.
The pandemic has also resulted in many re-evaluating their lives and adjusting to working from home and have spent time and money making improvements. Homeware, building services and trade costs have increased, and more buyers are looking for spacious homes in which they can work long-term.
The housing boom is potentially a short-term increase, and house prices may be negatively affected once the government’s furlough scheme ends in September.
Thinking about selling your property? Why not contact us for an instant valuation?
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