After months of lockdown, the residential property market has been supercharged this summer and autumn. Here’s what you need to know about selling and buying in the coming months
‘Exceptional’ is an overused word, but for anyone selling or buying a home, these really are exceptional times.
Initially, lockdown and the ban on in-person viewings stalled the market (though our Estate Agency team did manage to sell properties by video). Then, when restrictions relaxed on 29 June, the market went into hyperdrive.
"Properties of all types and prices are selling quickly…"
During August, our residential property team achieved its busiest-ever month, almost doubling the number of home sales compared to August 2019. The value of these sales was up 114 per cent.
What’s driving the market?
Properties of all types and prices are selling quickly, with a combination of trends driving up sales:
- pent-up demand
- the temporary 0% rate of Land and Buildings Transaction Tax (LBTT) for properties from £145,001 to £250,000 (previously, only properties up to £145,000 had the 0% rate)
- lifestyle demand, with a race for space as people look for properties with gardens and places suitable for working from home.
Encouragingly, plenty of first-time buyers are coming into the market – many used their reduced spend on commuting and going out during lockdown to boost their deposits.
The outlook
Looking forward, the economy is uncertain, but we still expect resilience in the residential property market. There remains a backlog of people wanting to move and the LBTT reduction is in place until 31 March 2021.
We see positives for both buyers and sellers, and our residential property team can maximise these for our clients.
You can find our guidelines for buying and selling during Covid-19 here.
