Why house prices have continued to rise in Manchester and the rest of the country amid a global pandemic

Although many aspects of life came to a halt during the pandemic, real estate is an industry that has seen continued growth.

House prices continue to rise, with record asking prices across Britain.

In the past three consecutive months, the national average has hit a new high, at £ 336,073 in June, according to Rightmove.

READ MORE: Family homes under £ 100,000 in happiest part of Greater Manchester

In Manchester alone, house prices have risen 12% in the past year, with townhouses costing an average of £ 202,603.

So, if you are planning to buy a new home, it can be difficult to know if the time is right to move, or whether it is better to wait until the booming market calms down.

Fortunately, the experts at Rightmove have provided some insight into why house prices are rising and whether they think the market is likely to calm down.

Registration number seeking to relocate

The demand for housing exceeds the number of properties available for purchase, according to Rightmove.

Over 180,000 new properties were listed on their website last month, but still not enough to keep up with demand. Homes are selling faster than ever before, and not only that, record numbers are being sold at or above asking price.

Since many now work remotely and therefore travel less, large single-family homes with large outdoor spaces are in high demand among buyers with big budgets.

Rightmove says these high-end sales contribute to the biggest increase in asking prices they’ve seen at this time of year since 2015.

Country and coastal movers

Many people move from more expensive urban areas to the countryside or the coast. This pushes up prices in towns and villages in the most demanded areas, including Wales and the South West.

Rightmove Property Data Director Tim Bannister said: “Demand from buyers is up 44% in Wales, compared to a year ago, the biggest increase of any. what part of Britain. Average prices are well below the national average, offering good value for money as well as a beautiful rural and coastal environment.

Stamp duty savings

The stamp duty holiday has helped many people afford more expensive homes.

The temporary reduction in stamp duty rates in England and Northern Ireland has offered buyers a potential savings of up to £ 15,000, which is why so many people have been rushing to move before the deadline.

However, as the tax has yet to return to its standard rates, the transition period means homeowners are still saving on properties up to £ 250,000 through September 30.

Record interest rate and 95% mortgages

Ultra-low interest rates have also helped more people move up the property ladder or move to bigger, more expensive homes, Rightmove says.

At the same time, the government-backed mortgage guarantee program was launched in March, allowing buyers with small deposits to access 95% mortgages.

Many high loan-to-value mortgages have been withdrawn by major large-scale lenders in the past year or so, but many have since returned to offering 90% and 95% mortgage products.

This has helped more first-time buyers climb the ladder than usual with similar budgets, creating competitive hotspots.

Ultra-low interest rates have also helped more people access the real estate ladder

What are the forecasts for the rest of the year?

Rightmove says a very early indication of demand is the number of people sending inquiries to realtors – which is still up almost 40% from the same period in 2019, despite the end of the holiday. stamp duty.

However, they believe there are early signs of a cooling in the market.

As the number of agreed sales continues to grow, available properties are scarce, they say.

Expert Tim Bannister said: “The higher prices combined with a lack of housing on the market reduce the ability or desire of some buyers to move, and while we expect the market to remain robust, there is has early signs of an incredible slowdown in the pace of activity that we have seen over the past year.

“This busy business cannot last forever, but we expect the market to remain strong for at least the rest of the year.”

So what does all of this mean if you want to relocate?

If you are considering selling your home, now is the “right time,” Rightmove says.

Many buyers will be looking to move before the summer is over, which means you’ll likely attract the most potential buyers and achieve a realistic asking price.

If you’re looking to buy, the most competitive segment of the market is large detached houses priced over £ 500,000, experts say.

They offer you to set up alerts matching your criteria so that you can get in touch with real estate agents to quickly book tours.

“If you’re selling a house to move out, it’s worth booking a real estate appraisal and having a real estate agent do it ASAP,” Rightmove adds.

If you are a first-time buyer, remember that you will not pay any stamp duty on a house priced at or below £ 300,000. And there are a number of government initiatives such as the mortgage guarantee scheme, first houses, and buying assistance that are all worth considering.

For the latest Manchester Evening News email updates, click here.

About Vicki Davis

Check Also

Five Covid Support Programs Ending This Month – And Last Chance For SEISS Grant

Households have a little less than two weeks left to take advantage of Covid support …

Leave a Reply

Your email address will not be published. Required fields are marked *