Buyer demand and house prices rising and new properties coming to the market are expected to rise in line with the schools going back
The latest study by Rightmove shows that demand from buyers is growing, with numbers so far this year way ahead of last year, however, buyer demand is outstripping new supply. The number of people contacting estate agents to buy is up 18% compared to this time last year, and the number of website visitors is up by 45%.
Because of this high buyer demand outstripping new supply, it isn’t a surprise to see house prices rising too. Asking prices are up by £1,500 compared to last month, which is the first increase for four months. The number of new properties coming to the market is down by 21% annually, however, one of the main reasons for this may be that families who are homeschooling – eg, everyone – are delaying coming to the market.
So, on March 8th, or even before now we have the roadmap, expect the numbers of properties coming to the market to rise. The Stamp Duty Holiday could still possibly be extended, however, it is clear that the stamp duty holiday is a perk and not one of the main reasons for people to move.
The lockdown effect – people looking for properties with office space and more garden space – is a definite factor though for people to move. Also, with more people working from home, fewer people are tied to where they live.
Rightmove’s property data expert Tim Bannister says, “Last year the market was unexpectedly buoyed by buyers’ determination to move and satisfy their new lockdown-induced housing needs. We may well be seeing a continuation of that this year.
“As well as the current lockdown motivating buyer demand again, the restrictions have also been a factor in limiting new supply, leading to some modest upwards price pressure. These are strong signs that new buyer demand is not facing a cliff-edge after the 31st of March.
“So far in 2021, home-schooling has taken priority over home-selling for some people. Family properties are suffering most, with the difficulty of preparing a property for marketing and viewings while it’s in use and occupied 24/7 by the whole family likely to give you cause to delay.”