House price increases have far surpassed stamp duty savings!

- Wed 09 Dec 2020

House prices continue to soar as the buoyant market continues. Latest data from Halifax show prices surging to 7.6 per cent in the year to end of November with the market at its highest since 2004. Prices since lockdown one have risen on average 6.5 percent in 6 months, giving you on average another £15,000 for your property.

The growth in house prices have more than wiped out the savings from the Stamp Duty Holiday. The initial 7.9 per cent rise is a result of the announcement of the holiday however the increase in price far out weights the £2,500 you would pay on a £250,000 home.

Despite earlier predictions that the market is likely to slow down considerably towards the end of the year, there is no real sign that market is coming to a standstill. In December the market always slows a little due to Christmas being distraction however activity levels still remain above the usual for this time of year.

Halifax managing director Russell Galley says: "While industry data shows agreed sales and new instructions to sell fell to their lowest level in the past five months, both remain at historically high levels and well above seasonal norms."

The current market is shaped by the desire for more space and city people realising they are able to work from home so moving their future plans to move to more rural areas forward.

There is a demand for the right houses in the right locations which is also helping the market levels at the moment.

Bradleys Director, Richard Greetham added "The reported increase in house prices must be viewed on a local level and not a national one due to the vast difference in supply/demand that affects whether prices can rise. Across our region there is no doubt we have seen a significant increase in demand this year, therefore prices have risen, although some areas more than others.

We have experienced more demand for properties in the £500,000+ region with land, more space or water views. Lockdown has confirmed what is important to a lot of people which has motivated them to move to the South West, sooner than they were originally planning.

With 2021 around the corner we will see whether this will continue as there are various factors to consider. The main positive news right now though has to be the vaccine being rolled out, which hopefully will provide some level of normality return. If you are considering marketing because it is the right time to move, we advise you do exactly that. All home movers should do so when it suits them and not to try and guess the housing market.

To arrange a free valuation of your home, contact your nearest branch and should you go ahead and market your home, you will also be in with a chance to win a £1000 John Lewis voucher for anyone who instructs Bradleys to sell their house in December 2020!