In just the last few years, these prices have jumped several tens of thousands of pounds. It is estimated that the UK market is currently seeing a major boom at the moment, with house prices rising 9% annually. But why are the house prices rising so fast?
There are a few aspects to this price rise, primarily as a result of the Coronavirus pandemic. By reading on, you can learn more about reasons for these price increases.
Right now, estate agents are doing house viewings in person and buyers can move even with the current Coronavirus measures in place. The market started noticing a boost back in July, as the government cut the stamp duty on property purchases temporarily during the pandemic.
These gave homebuyers the potential of £15,000 tax savings as long as they move within the deadline, which has been extended to allow more people to take advantage of this opportunity.
As a result, people are rushing out and buying houses so that they can benefit from this tax cut. This is one reason why house prices have been rising.
In this section, you can get a look at the impact that COVID-19 had on the housing market including with the stamp duty holiday. It’s hard to get a really accurate look at the clear picture of the housing market.
There is still a lot of uncertainty what the future holds as the pandemic is nearing the end, meaning that the figures will tend to fluctuate.
Using the Land Registry’s UK House Price Index, you can find the most reliable measure of house prices.
According to Land Registry, the average property price rose to £250,772 as of April 2021, with an 8.9% increase year-on-year.
You could also look at Rightmove, which has more up-to-date data but only goes based off of asking prices instead of how much the houses were actually sold for.
There are different measurements, but the Land Registry is probably the most reliable place to turn for data.
What does this mean for the remainder of 2021? Currently, there’s a lot of optimism in the market as buyers are facing serious competition especially in these highly sought-after areas.
According to some data, the time that it takes to agree upon a sale has significantly reduced since the start of the pandemic. The current average is that it takes around 41 days. Sales are happening fast, but this might change when the stamp tax holiday ends.
Another thing that is likely going to happen is that the house prices will continue to rise. The house prices could see an additional 4% increase and there will be a lack of supply that will keep these prices high.
Measures taken as a result of the pandemic have brought upon this boost to the property market, creating a seller’s market which means there are higher house prices.
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