Over the last few months, people have been reluctant to move due to lockdown restrictions. Now that things are starting to ease and towns are opening back up, now might be the perfect time to make your move.
The pandemic has led many to re-evaluate their home lives and look for properties more suited to their new way of living. This, paired with the Stamp Duty Holiday, has fuelled competition among buyers, with many willing to pay over the asking price. This meant that by the end of last year, the average house price in the UK had increased by 8.5%.
However, this increase has also been met with an average pay growth of 4.5%, meaning properties could be just as affordable as they had been in previous years. So while competition might be fierce among buyers, now could still be an excellent time to move.
Most of the increase in house price rises has been due to buyers willing to pay over the asking price, so stay one step ahead by actively looking for any properties that pique your interest. If you can avoid getting into a bidding war, then you’ll be able to purchase your property for its actual value.
With Covid restrictions making everything a little trickier, time to completion was significantly delayed throughout last year. This meant that many buyers were potentially going to miss the deadline for the Stamp Duty Holiday, so the government decided to extend the holiday in order to avoid these sales falling through.
Buyers now have until 30th June 2021 to benefit from the current £500,000 threshold. This threshold will then be reduced to £250,000 between 1 July and 30 September, with the holiday ending on 1 October.
Now is the perfect time to start looking and make the most of the Stamp Duty Holiday. Apart from the property itself, Stamp Duty comes in as one of the most expensive costs in buying a house. If you can get your purchase completed before the holiday ends, then you could be saving up to an average of £4,500.
This makes the cost of moving much more affordable, and could even help you look at properties that would have otherwise been outside your price bracket.
Aiming to turn ‘generation rent into generation buy’, the government has started a new scheme designed to encourage mortgage lenders to offer 95% mortgages. While these were once popular, many lenders withdrew them from the table during the pandemic.
This new scheme will run from April 2021 to December 2022, and means the government will give the lender compensation if the buyer defaults on their payments. While this doesn’t change anything on the buyer’s end, it reduces the risk for lenders—which means there is now plenty of these mortgage offers available once more.
Saving up to buy a house is one of the biggest hurdles in buying your first property or dealing with homes with low equity. But with 95% mortgages back on the rise, this means you’ll potentially only need a 5% deposit, making it easier to save up the funds to get moving.
If you do have a bigger deposit, you can also benefit from some great mortgage deals. Mortgage deals more than halved during the pandemic, but as things start getting back to some sort of normality, things are beginning to improve. There’s still some way to go before we reach pre-pandemic levels, but there are currently some of the best deals on offer since March 2020.
If you’re looking to buy, then there is a whole array of offers to take advantage of at the moment. The Stamp Duty Holiday could make you some significant savings, while an increase in 95% mortgages is making it easier to get on the property ladder.
There is competition though, so make sure to do your research. By staying on top of what’s going on, you’ll know what’s available in your preferred area and be able to snap up any properties that come along.
If you need to sell, then now really is a seller’s market. Buyers are eager to make the most of the Stamp Duty Holiday before it ends, and this is driving competition for higher offers. Here at Coleman Estates, we have seen a massive increase in the number of properties receiving offers either at or above the asking price.
Just remember that if you’re also looking to buy, then other properties will likely be experiencing the same uplift. Again, it all comes down to research. Whether you want somewhere bigger, smaller or about the same, check out any recent sold prices to make sure it’s worth it.
The property market is constantly changing, so if you’re looking to move, then come speak to our team for professional and honest advice. We’ll guide you through the local area, giving you all the information you need about Telford’s property market. Get in touch today to start making your move.
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