2020 Housing Market Ending On A High

3rd December 2020 posted in SELLERS

At Country Properties, we work hard to provide you with support in the local housing market, but we also try to keep you up to date with what is happening nationally.

We are pleased we have helped many buyers and vendors in and around Letchworth Garden City of late. The stamp duty holiday has created significant activity in the housing market, and at the end of the year, the market appears to be in good shape.

HMRC figures highlight the strength of activity in the market

According to the HMRC, an estimated 105,630 residential transactions in October took place. This is the highest figure for any October in the past decade. The October figure was also 9.8% higher than the September figure.

Perhaps of greater relevance is that the October figures are higher than the pre-pandemic levels. While there might be various factors involved with this increase, the leading factor is the stamp duty holiday.

Marc von Grundherr, a respected name in the UK property market, said; “There’s no doubt that the reopening of the property market and the stamp duty holiday caused a huge influx of buyer demand. However, it’s only really now that this demand is starting to translate into a full return to health where actual transactions are concerned. This is, of course, due to the lagged nature of the property selling process and so this positive health report is really just the start of what should be a steep increase in transaction volumes over the coming months.”

Many industry experts believe the figures for December will be just as positive.

Zoopla predicts a busy December in the housing market

Zoopla has tipped house price inflation to reach 4% by the end of the year. At the end of November, it is sitting at 3.5%, and this is the highest level since December 2017.

The most recent House Price Index from Zoopla states the average UK house price stands at £223,550. The property portal believes the housing market is set to enjoy its strongest December for more than ten years.

Richard Donnell is the director of research & insight at Zoopla, and he said: “It has been a rollercoaster year for the housing market which is ending on a strong note, with demand and sales agreed still more than 30% higher than this time last year. House price growth has hit a three-year high and is set to increase further in the short term.”

Richard concluded by saying; “The high volume of sales agreed this autumn will spill over as completed sales in 2021 and this will support the overall number of sales completed in 2021 at 1.1 million. It has been a remarkable turnaround and completed sales look set to fall just 6% short of last year despite a two-month closure of the market in England.”

Currently, in line with Government guidelines, our Letchworth Garden City branch is open and our and lettings personnel are here to assist you. To clients old and new, if you have any queries or need advice on property sales and lettings then please call 01462 481100 or email ian.ellmers@country-properties.co.uk.