It’s still a great time to sell……
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Most experts are seeing a ‘Post-Budget’ spike in demand for housing.
The Chancellor’s announcement of a stamp duty holiday extension and 95% mortgage guarantees created a 24% spike in buyer demand in England the days following the Budget, as more first-time buyers and movers entered the market.
Average buyer demand levels since the start of this year are running 13% higher than average levels across the whole of 2020. The largest post-budget bounce in demand was for three-bed houses – this type of home is attracting the largest levels of demand across the country.
However, there was also a noticeable spike in demand for one and two-bedroom flats after the Chancellor’s announcements, with increased buying intent among first-time buyers and those looking to take advantage of the new mortgage products, not to mention the remainder of the stamp duty holiday.
While there was a slight post-budget rise in supply, overall supply levels remain deeply constrained, with total supply this year down 13% vs the 2020 average. As lockdowns ease and vaccinations continue to be rolled out, we expect more pent-up supply to come back to the market as vendors feel more comfortable opening their homes for viewing, albeit with the usual seasonal Easter dip.
Increasing activity levels among first-time buyers, especially as they take advantage of more 95% mortgages from April 1st, will keep pressure on the demand/supply imbalance however, as these buyers have no properties to sell.