Whether you have been considering selling your home for a while or are tempted by the idea of a new place in 2021, now could be the best time to get your property on the market. The UK’s property market has been soaring these last few months, and many homeowners are making the most of the high prices and stamp duty holiday. Buyers are battling over the most sought-after homes, and now could be the best opportunity to get the most from your investment. Today we are looking at whether now is the best time to sell and whether you should move fast in a hot market or hold off until things begin to cool down.
Average UK House Prices Have Peaked
The average house price in England has grown by a huge 10.2% over the year from March 2020 to March 2021. This is up from 9.2% in February and the highest growth the country has seen since August 2007. House prices started to rise towards the end of 2020 and continued into 2021, and many industry leaders believe it is down to homeowners reassessing their preferences during the pandemic. Detached properties have seen a price increase of 11.7%, compared with maisonettes and flats increasing by just 5%. It is clear that buyers are prioritising homes with more space and outdoor areas than ever before.
You can now expect to pay an average of £256,000 for a property in the UK, up from £232,000 in March last year. All countries in the UK have experienced this growth, with England remaining highest with an average price of £275,000. This is a record level high for the country, and the areas in England experiencing the growth are not following the usual trends. Yorkshire and The Humber have seen the highest annual house price growth, increasing by 14% in the year. London has had the lowest annual growth, with just a 3.7% increase over March 2020. This is down to many homeowners choosing more rural locations, as the rise of remote working means employees don’t need to stay close to their offices.
Buyers Are Competing For High Demand Homes
Not only have house prices increased over the last year, making it a great time to sell up, but buyers are competing more fiercely than ever before. Research has revealed that 32% of properties sold in April were bought for more than the asking price, which is the highest figure on record. The demand for homes is exponentially high, and there is an average of 16 buyers for each property on the market. This makes it an even more attractive time to sell, as buyers are likely to offer more and move faster than ever before. Properties in sought after locations with attractive features such as large gardens and home offices are in very high demand.
The Impact Of The Stamp Duty Holiday
The temporary cut on stamp duty has had a real impact on property sales and the market in general. Many homeowners are taking this opportunity to move home while they have the chance to save some significant money. Buyers in England can save up to £15,000 depending on the property they purchase, which is a huge incentive to buy quickly before the stamp duty holiday ends. The relief on stamp duty was due to come to a close at the end of March 2021, and thousands of buyers rushed to close their sales before the deadline. HMRC released data showing that over 180,000 property transactions were completed in March, the highest figure since the beginning of the Coronavirus pandemic. Since then, the government have extended the deadline to 30th June 2021, so we can expect sales to continue in these high numbers until that date.
The Threat Of A Housing Market Crash
The age-old saying of ‘what goes up must come down’ is at the forefront of everyone’s minds at the minute. With house prices at a new peak, increased demand from buyers and the looming end of the stamp duty holiday, many experts are concerned about an impending crash to the market. Mortgage rates are rising, and buyers are inevitably going to hit an affordability wall with these new increased prices. While a crash to the property market is not certain, it is a potential threat that homeowners should be aware of. If you have been considering selling your home in 2021, then now might just be the right time to do so. A combination of all-time high prices, unprecedented buyer demand, and the end of the stamp duty holiday make right now one of the best times to sell.