October Market Comment 2020

By in Blog with 0 Comments

To say estate agents are busy would be an understatement. The unprecedented uplift in buyer demand over the past three months certainly bucks any notion of pandemic paralysis. Rightmove tells us that buyer enquiries are up 14% annually and sales agreed are just 5% below this time last year – which is pretty remarkable under the circumstances. Considering the market was stagnant for most of 2019, the last quarter’s 8.5% increase in buyer demand is extraordinary and has contributed to an annual 5% uplift in house prices. This will be a relief for any homeowners who were wondering if last year’s house price plateau was here to stay. Bizarrely, Covid-19, along with some government intervention has certainly overcome that, at least for the time being, because when activity rises, house prices follow.

Nevertheless, research from PwC suggests that up to 20% of people say they are now less likely to purchase a home over the next couple of years compared to pre-Covid-19 figures, due to the ongoing pandemic and economic uncertainty. This is partially balanced by the 10% of people who say they are now MORE likely to move than before, possibly due to the stamp duty holiday worth up to £15,000.

Don’t forget that maximum £15,000 SDLT saving is on a £500,000 property – the average saving is about £4,500 but only until March next year when the concession is due to expire. So if you’re thinking of moving next year – do bring it forward!

Interestingly first time buyer sales agreed are up 36%. Additionally, the good news for first time buyers is that the government is planning to help young people become “Generation Buy” by helping them onto the property ladder with just a 5% deposit. It’s essential not only to power the property market from below, but it’s also good for society to make home ownership available to all. Having said that, government intervention in the economics of supply and demand usually ends in tears.

Although buyers are certainly buying, a potential difficulty is the length of time it is taking for local authority official searches to come back due to Covid-19 related staffing issues. Some are taking up to two months, which could really frustrate buyers hoping to take advantage of the stamp duty holiday. So a key word of advice here is that if you are a seller – order the searches yourself – even before a buyer is found – it could just save you your sale! Please feel free to speak to any of our agents about how to go about this.

On the investment side, landlords will be pleased to hear that, according to ARLA, the number of new prospective tenants registering, is the highest on record with over 100 applicants per branch, breaking the last record set in 1997! Average tenancy duration is also at an all-time high, with tenants staying in their properties for an average 21 months.

If you’d like any advice as to how the current climate could affect your moving or investment plans, please don’t hesitate to contact us on 01242 257333 or 01452 597994 for a free overview, with a smile and no obligation.

Share This
George Tatham-Losh

Since forming the business in 2009, our founder, George Tatham-Losh, has become highly regarded as the local go to expert for advice on maximising property values and getting the most out of property investments, regularly speaking at events and holding well attended seminars. Born and raised in Cheltenham, George knows the town and County like no other and knows what works in the area. Alongside George is a specialist team of agents with a wealth of experience to help you sell, buy, let or rent property in Gloucestershire.

Blog Post Disclaimer

This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

Downloadable Files and Images Any downloadable file, including but not limited to pdfs, docs, jpegs, pngs, is provided at the user’s own risk. The owner will not be liable for any losses, injuries, or damages resulting from a corrupted or damaged file.

Comments Comments are welcome. However, the blog owner reserves the right to edit or delete any comments submitted to this blog without notice due to :

  • Comments deemed to be spam or questionable spam.
  • Comments including profanity.
  • Comments containing language or concepts that could be deemed offensive.
  • Comments containing hate speech, credible threats, or direct attacks on an individual or group.

The blog owner is not responsible for the content in comments.

This blog disclaimer is subject to change at anytime.

If in considering action upon the contents of this blog, one should always seek professional advice.

We Won Banner We Won Banner