'mini-boom' as stamp duty holiday fuels demand, says Rightmove

The post-lockdown housing market has now picked up where it left off and has been accelerated by the temporary stamp duty holiday and by homeowners reappraising their homes and lifestyles.

'mini-boom' as stamp duty holiday fuels demand, says Rightmove
The housing market is coming out of lockdown fighting as buyers rush to find homes with gardens and working-from-home space and sellers hurry to list their properties, in time to take advantage of the stamp duty holiday.

Rightmove reports an increase both in average asking prices and the number of deals being struck this month.

Average London asking prices are up half a per cent since lockdown began, to £641,854, representing a cash increase of £3,209, while prices over the past year in the capital are up an inflation-busting 3.9 per cent.

In contrast, the average UK home now has a price tag of just over £320,000, which is £7,640 - or 2.4 per cent - up on March. The uptick represents annual asking price growth of 3.7 per cent.

Rightmove also reports that for July so far, buyer enquiries are up 75 per cent on the same period last year. And 44 per cent of homes that have come up for sale since May 13 are now under offer. Last year 34 per cent of homes listed in the same period had handshake deals in place.

An unexpected boost


This early show of confidence is likely to be boosted by the eight-month stamp duty holiday announced by Chancellor Rishi Sunak in his summer mini Budget this month, with no tax to pay on homes priced £500,000 or less until March 31 next year.

Miles Shipside, Rightmove director and housing market analyst, admits the lively market was unexpected but says it could reveal the shape of things to come.

“The spring market has now picked up where it left off and has been accelerated by both time-limited stamp duty holidays and by homeowners reappraising their homes and lifestyles because of the lockdown,” he says. “These figures are the earliest indicator of house price trends. They show prices gently rising not falling, and this will be reflected in the coming months.”

Lucian Cook, director of residential research at Savills, believes the pandemic itself has driven demand, saying: “The experience of lockdown has made people reassess what they want from a home. Despite the economic backdrop, this has unlocked demand from financially secure families looking for more space in particular.”

The working-from-home effect


Another driver of the market is working from home. “Our clients are saying that they want to sell up in London and go out to benefit from the cheaper house prices and get more space for their money,” says Paul Clarke, founder of Mr & Mrs Clarke estate agents.

“Although there is a concern about their employment, clients are saying that they want a home they can work from and they don’t mind a longer commute as they will be doing it less frequently.”

In Finchley, north London, Jeremy Leaf, principal of Jeremy Leaf & Co, says more homes are also coming on to the market, helping balance supply and demand. He agrees that the stamp duty holiday has stimulated demand, but doubts there will be a price boom, given the double threat of a resurgence of Covid-19 and the end of the Government’s furlough scheme in the autumn.

Meanwhile, Lucian Cook believes the market will continue to bustle over the summer, thanks largely to the temporary stamp duty tax break. But he doubts increased activity will lead to significant house price growth. “We expect the market to remain price sensitive over the rest of this year and the early part of next,” he adds.

Get in touch with us

First Name*
Last Name*
Your Email Address*
Mobile Phone*
Are you looking to*
Please enter message here*
Please confirm that it is okay for us to contact you about this information as well as products and services. (You will always be given the right to unsubscribe at any point in the future)*

Register for Property Alerts

Ever missed out on the perfect property just because you heard about it too late, or the Estate Agent never told you about it as it was slightly outside of your criteria? Never miss out again by using our “Heads Up Property Alerts”.

Meet Our Founding Director James

Meet Our Founding Director James

James Allen is the founding director and owner of Allen Residential. James started in estate agency back in 1997 and after working for a couple of strong independent estate agencies he established Allen Residential in 2005 Keen to invest back into his team, James is dedicated to ensuring that each team member at Allen Residential is a key part of the business, emphasizing the importance of their contributions. His leadership style highlights the significance of a cohesive and dedicated team, fostering a supportive and growth-oriented environment. The business has flourished in recent years, thanks to the staff's commitment to excellence and the implementation of effective systems. James' appreciation for his team’s hard work and dedication is evident, making Allen Residential a thriving and dynamic company.

Why choose Allen Residential?

Why choose Allen Residential?

With an owner who has 35 number of years experience in the industry and 20 years of company history, we bring knowledge, reliability, and expertise to every property transaction.

Our approach is casual and professional, aiming to form personal connections with the people we work with instead of treating them as a number.

About Us