The stamp duty holiday has ensured the significant level of activity in the housing market since the market reopened has been maintained. The chance to save up to £15,000 is enticing for many households, and it shouldn’t be a surprise to see houses in great demand.
After all, at the time the holiday was announced, the Office for Budget Responsibility (the OBR) tipped an additional 100,000 homes would be sold.
There is still demand for city properties
While a lot has been said about property buyers looking for homes in the countryside, there is evidence to suggest Nottingham is still in significant demand from house buyers. According to Zoopla, prices in Nottingham have risen by 4.4% in the past year, reaching an average of £158,500.
This level of growth is larger than the level recorded in Manchester, at 4%, Leeds, Liverpool and Edinburgh, with the last three listed locations enjoying a rise of more than 3%.
Zoopla released a statement, saying; “Activity in the housing market is now running at its strongest pace for over five years, with the number of newly agreed sales in August up 76 per cent against the five-year average. This is not just pent-up demand returning to the market. It also reflects the impact of a once in a lifetime reassessment of the nation’s housing needs in the wake of the 50+ day lockdown.”
Zoopla is optimistic for 2020 house prices
Zoopla has provided the following three reasons as to why house prices might hold firm for the rest of 2020:
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By historical standards, house prices are increasing at a low rate, and it is unlikely there will be a sharp increase in forced sellers
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While many households have been negatively affected by the economic downturn, it is likely tenants rather than homeowners will be most significantly affected
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The behaviour of house prices in the last two recessions where they bid up before a downturn suggests that prices will rise in 2020
Richard Donnell, research and insight director, Zoopla, said: “Housing market conditions remain unseasonably strong despite the UK moving into recession. While the economy has contracted sharply and unemployment is rising, consumer spending has rebounded and purchasing manager indices are pointing to a wider rebound in the economy. This is positive but the unwinding of the furlough scheme and other Government support is the next challenge that will test the strength of economic recovery.”
There has also been backing for the current level of housing market activity from The Guild of Property Professionals. Iain McKenzie is the CEO of that body, and he said; “The surge of activity in the market is exceptional. Since the housing market reopened, our members have been busier than ever with some saying they have never been as busy as they are now. “
We offer property management, property to rent and property for sale in Arnold, Woodthorpe, West Bridgford, Hucknall, Carlton, Wilford, Mapperley and throughout the Nottingham area. If you would like to arrange an appointment to help you negotiate the local buy-to-let market, please contact Holdencopley today by calling us on 01158969800 or emailing steven@holdencopley.co.uk.