Property market updates Autumn 2021

30 September ’21 marks the end of ‘Property tax holiday’ and Coronavirus Job Retention Scheme. Together with the return to office working, renewed interest of international residential property buyers and investors, rise of second home buyers, and a wide selection of property mortgages on offers – these are the factors expected to impact the UK autumn property market which remained busy during summer 2021.

The housing market report for August ‘21 from Zoopla published this month highlights high levels of house price growth as well as the fact that the UK summer market was moving at its fastest pace for five years. Wales recorded the highest level of price growth at 9.8%, followed by Northern Ireland (8.4%) and the North West of England (8%). These are three regions with greater affordability and higher buyers’ demand compared to the much-constrained London market where the average house price rose by 2.2% in August.  London has recorded fewer property buyers during the period, which is linked to the almost diminished international travel as well as the change to flexible working conditions and subsequent switch to the wider commuter zone and more spacious rural housing property search. According to the report, the UK market is continuing to move at its quickest pace for the past five years as the average time to sell a UK property, in each month since May ’21, was 30 days.

The UK housing industry leaders and major indices (Nationwide, Zoopla, Rightmove…) report continuous rise in property prices and increased buyers’ activity throughout the country after the summer slowdown which followed the end of temporary tax break in July ’21.

At the beginning of September ’21, Savills research published an update from which we highlight the following: ‘Transactions dip in the wake of the stamp duty deadline, but house price growth remains strong. Mortgage data suggest activity will remain strong, with 2021 seeing 28% more mortgages approvals so far compared to this time in 2019’. The home mover buyer numbers are up 144%, making 33% of the market.’

A separate analysis based on sales of properties in England & Wales, from the same research team, states that ‘Home sellers made an average of over £110k profit in the year to May 2021, £15,587 higher than the year previous. Equity-rich homeowners have dominated property market activity since the start of the pandemic.’

‘Second home purchases outside London increased by 83% in the first eight months of 2021 compared to the five-year average, according to Knight Frank, the real estate consultancy. Based on data, the prediction is that the second home boom is not over despite the 3% surcharge introduced in 2016.

Savills’ house price forecast for 2022 has an average growth of 3.5%, ‘with the market expected to experience a soft landing, given a shortage of stock available to buy.’

The strong price growth recorded during the pandemic has been contributed to the trend defined as ‘race for space’, where many buyers preferred houses with gardens and properties with spacious and flexible interiors allowing remote home working. The recent changes as to how we live and work will continue to have impact on the market with a growing demand from house movers targeting areas with larger properties.  Other factors that will impact the future UK housing market trends, especially the house price, are the income growth and the interest rates.

The reduced rate of stamp duty tax on house purchases was introduced in July 2020. The nil rate tax band threshold of £250,000 expires on 30 September 2021. From 1 October 2021, the nil rate returns to the standard amount of £125,000.

For all London residential property sales enquiries please contact our agents :  

Call  +44 (0)20 7701 7000 or Email sales@chaseevans.co.uk