September marked the return to pre-Covid transaction figures and October saw the highest annual increase in house prices since January 2015. Consumer sentiment has dropped and we have entered a second lockdown; however, the housing market will remain open, the furlough scheme has been extended and mortgage holidays are available.
Sales were up by 11.9% in London, 4.3% in Wales and 4.2% in the South East in the last 12 months, year on year.
The end of March 2021 marks several changes in the housing market which will spur on buyers. Existing homeowners will want to complete before the stamp duty holiday ends and overseas buyers will want to beat the introduction of the 2 per cent surcharge. New build buyers will want to make the most of the Help to Buy equity loan scheme which after March will only be available to first-time buyers, with regional price caps in place. There will also be increased competition for new build homes as new home completions have seen an annual decline of 62 per cent. The housing market is set to remain high on the government’s agenda following the Prime Minister’s announcement of Generation Buy. Fiscal stimulus should help boost the housing market after March 2021.