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Is it good news, as house prices are on course to rise by 14 percent between August and November 2020. The annual growth forecast is set to hit 11.4 percent in October and 14 percent in November based on deals already agreed.
This is thanks to a strong demand in the market, which has seen an annual increase of 55 percent of conveyancing quotes this summer.
However, those wishing to cash in need to act as the spike in prices is not set to last.
The spike expected to be short-lived, with prices returning to more normal levels in the second quarter of 2021.
The average house price agreed has gone up from £316,753 in July 2020 to a projected £336,946 in November 2020.
That’s a huge difference of £20,193.
Rob Houghton, CEO of reallymoving, comments: “Buyers are determined to make their move now, despite the fact that the current spike in prices will in many cases wipe out the stamp duty savings.
“For those higher up the ladder with secure finances, a healthy level of equity in their property and little other debt, gloomy economic forecasts are only encouraging them to press ahead with the move rather than sit tight and wait out what could be a long and painful recession.
“More than ever people’s homes are their castles and their offices – and with borrowing costs likely to be rock bottom for the foreseeable future, paying over the odds on a purchase isn’t too painful if you’re also getting over the odds on your sale and making a stamp duty saving.
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“It’s a different story for First Time Buyers though, who aren’t benefitting from stamp duty savings in most areas and who have seen low deposit mortgages all but wiped out.
“This explains why the proportion of First Time Buyers in the market has dropped by 19 percent since May.
“We anticipate that this boom will be relatively short-lived.
“With the end of the furlough scheme around the corner and the prospect of further lockdowns on the horizon, not to mention the growing likelihood of a No Deal Brexit, demand is likely to drop off through the late autumn and winter, reversing the current spike in house prices.”
Is now a good time to buy or sell a house?
Mick Silver, CEO of digital property platform Moovshack told Express.co.uk: “If a second wave hits and we return to a full lockdown, house prices will drop faster as the economic impact will be more severe.”
Mike Scott, Chief Analyst at Yopa, said that momentum has clearly returned to the market due to pent up demand, but recommended getting a sale in before the end of the Stamp Duty holiday next year.
He told Express.co.uk: “Taking everything into account, we can expect a rocky second quarter of 2021.”
If you aren’t looking to move but are looking to add value to your house, why not sign up for the Green Homes Grant?
The government scheme is offering up to £10,000 per home.
For most households, the government will cover two thirds of the cost of improvements in your home.
This covers up to £5,000, although some households can get more.
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