How is coronavirus predicted to affect the UK Housing Market in the next few months?

Are you thinking about selling your home at the moment? Are you concerned whether it’s the right time to be making such a big financial decision in the current climate?

Well now that the housing market has opened up once again, with estate agents able to conduct viewings and house sales able to take place again, you may be pondering whether now is a good time to be selling your home or getting on the property ladder and making that first move. 


Maybe your house sale is being forced by necessity of external factors, so you have to move and you’re questioning whether you will be penalised for selling or buying over the next few months.


Well, although no one has a crystal ball, here’s what we know based on activity over the last few months since lockdown lifted.


The good news for buyers, is that all of the UK governments have temporarily cut stamp duty, so this means that if they move home before April 2021, buyers could potentially save up to £15,000 in tax which is a fairly big chunk of money to be able to save or put towards other costs of moving or invest into refurbishing your new property.


The government hopes that this hiatus on stamp duty will help to reinvigorate the housing market and with 70,710 property sales going through in July, up 14.5% on June’s figures it does look like people are keen to get moving again. In fact, the land Registry’s latest figures demonstrate a 2.9% year-on-year rise in prices.


It seems that nationally, there is a great deal of optimism around the property market at the moment. Rightmove recently reported its busiest month for 10 years as lockdown lifted and people flocked onto the website to find their next property, although this could be a short-term burst, and the housing market could slow in the long term with wider economic concerns taking effect as we move towards the colder months and into 2021.


Yes, that’s all great we hear you say, but what does that mean for my house move down here in leafy Hertfordshire?


Well, reports indicate that mid-range buyers in more expensive parts of England are likely to be the biggest beneficiaries of the stamp duty cut, with savings of £10,000 on a £400,000 property and £15,000 on a £500,000 property encouraging more moves, so that means that being situated within commuting distance of London and in prime commuter belt territory to other places too, properties in sought after areas such as St Albans could rise in the short term and before April 2021 it all looks promising. However, remember that crystal ball we talked about? At the moment, not even the government seems to be able to second guess their next set of announcements, so depending on what happens within the political and economic climate, we could see house prices fall over the next 12 months.


So, in the short term it seems to be good news if you are considering selling, as it definitely means that there are buyers out there wanting to move and willing to pay market prices, and good news for buyers, as they save on the stamp duty and so may well be looking to move before April to make that big saving.


We’re always happy to discuss the housing market locally and to showcase the range of properties we have available for sale and rental, so if you are considering selling, buying or renting, then why not give us a call on 01727 221290