UK housing market sees ‘mini boom’ as lockdown eases

Lockdown is still very much here, but as it continues to be eased, it appears as though the UK’s housing market is benefiting from a small boom. As asking prices rise to record highs, at least according to property website Rightmove.

The market is bouncing back

Homes coming back onto the market, pent-up demand finally being released, and many homeowners looking to change their lifestyles has seemingly created the perfect storm to help boost buyer inquiries. Plus, the stamp duty giveaway has also undoubtedly helped to foster a surge in the UK housing market activity. As buyers of homes up to the value of £500k in England and Northern Ireland pay no stamp duty until the 31st of March next year. Rightmove released figures that highlighted how the average price of UK property heading onto the market reached the highest since 2001, increasing to £330,265 last month. This was a notable increase of 2.4% on the previous record reported just before the market was placed on hold in March. Total inquiries are up by seventy five percent, year-on-year in Britain according to Rightmove. The website also stated that this activity would rise even more as the housing market in Scotland opens up. It’s also worth keeping in mind that the market in Wales still has tight restrictions in place.

London not getting a look-in

This increase in the market though hasn’t been reflected in the UK capital, with the increase in London being significantly lower since March. Rightmove reports that the increase of inquiries was only 0.5%, which seems to fuel speculation that many potential homebuyers are looking to move away from the city to smaller, or rural areas.Many homeowners seem to be searching for a new way of living and rethinking their priorities in the wake of the ongoing pandemic. Homeowners reappraising their homes and lifestyles during lockdown, combined with the stamp duty holiday has certainly helped to fuel this unexpected mini-boom. And as the UK opens up more and more from lockdown this looks set to continue gathering momentum.

The housing market flux

No one knows when the effects of the coronavirus pandemic on the housing market will truly stop, and despite the ‘mini-boom’ the market is currently experiencing, things are still very much in flux. As well as mortgages though, remortgage applications have risen dramatically by 110% year- on-year as people tried to raise capital or pay off debts as personal finances took a hit. As mortgage brokers in Manchester, we’ve been helping people find the very best deals on the market. With remortgage applications increasing, it’s a good idea to act sooner rather than later as remortgaging can take time and lenders will be extremely busy. Contact us today for help.