Why Is The Property Market Booming?
Mon 19 Apr 2021
If you’re finding that the properties of your dreams are getting snapped up before you can even get through the door to view, we promise you aren’t the only one! Here is some info on why it’s all a bit mad in our world right now.
In the spring 2021 Budget, Rishi Sunak, the Chancellor of the Exchequer, chose to continue supporting the property market by extending the stamp duty holiday from the end of March to the end of June. After this date, the starting rate of stamp duty will be halved to £250,000 until the end of September.
Interestingly, the high levels of demand currently being experienced started towards the end of the first lockdown. In early summer 2020 there was great enthusiasm for property purchase and this has continued unabated during lockdowns two and three. This confidence continues despite the threatened end of the stamp duty holiday and the potential of higher unemployment when the current furlough ‘cushion’ comes to an end.
Butcher Residential has found that there are a wide range of reasons behind the current motivation for moving home. For some, the lockdown restrictions have highlighted the importance of living close to, or with, family and friends. After the initial shock of being in a previously unthinkable situation - of being told by government not to go to work - lockdown provided the opportunity of standing back to re-assess lifestyle choices and the work/life balance in a way that’s not easy to do during the normal busy and demanding working life. Going forward, the increased use of virtual meetings, and working increasingly from home, has opened up the possibility of re-locating to our beautiful local countryside instead of having to accommodate the routine daily commute to regional hubs.
A further boost for the market was the Budget announcement of a mortgage guarantee scheme to help people with small deposits get on the property ladder by offering incentives to lenders to provide 95% mortgages. To state the obvious, first and second time buyers are needed to keep the property market moving so this is a very welcome initiative. Details of how these schemes can help are available through mortgage advisers and, with homes selling quickly, it’s essential to speak to them in advance of starting to view properties. Butcher Residential’s mortgage advisers are Stepping Stones in Penistone (covering Penistone & Barnsley - 01226 693001 - info@steppingstonesfs.co.uk) and Avail in Denby Dale 01484 556245 – hello@availmortgagebrokers.co.uk.
In summary, there are currently many reasons to be optimistic about the property market. If you’re thinking of moving do get in touch. Our staff at Denby Dale, Penistone and Barnsley will be delighted to help.