The UK’s housing market is set to benefit from the country’s second lockdown more than the first earlier this year. Estate agents are already seeing high volumes of transactions, from people who invest in property and owner occupiers alike.
High transaction volume
Due to the hugely increased number of housing sales this year, conveyancing systems have already been struggling under the pressure. With valuation appraisals 38% higher in the first week of the second lockdown than in the same period last year, it looks likely these systems will be put under more strain.
Exchanges were also 11% higher in the first week of the second lockdown. This reflects the trend seen in previous months of 2020, whereby the high number of properties receiving offers has led to an increased number of exchanges.
Second lockdown trends
The UK’s property market during the country’s second lockdown is bearing little resemblance to the first. As estate agents have been allowed to remain open this time, the high level of transactions seen since May have remained firm.
There has been a mix in attitudes from sellers and buyers of property investments and homes for owner-occupiers. The second lockdown has led to some acting with caution and delaying major decisions. But estate agents are reporting that the lockdown is encouraging others to act more swiftly.
A trend which has accelerated since the first nationwide lockdown is the desire for more space. As more and more people continue to work from home, having space to do so has become a top priority. This additional space to work is now a key feature to consider when deciding to invest in property.
Stamp duty holiday effect
The thriving UK housing market has certainly been boosted by the Government’s stamp duty holiday. The scheme runs until the end of March 2021. And it has cut the stamp duty to 0% for all properties up to £500,000.
Many buyers and sellers have rushed to complete their transactions before the deadline, as there are substantial savings to be made.
According to property experts, the second UK lockdown will cause less of dent in the housing market than the first. With agents staying open and viewings and transactions allowed to continue, the property investment and owner-occupier markets have remained strong, and look set to stay this way for the coming months.
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