What is in store for Manchester’s housing market?

An elevated demand

Across England in June, the asking price for any houses sold ended up rising by 7% - at least according to property website Zoopla. This rise was compared to last year, and the marked increase was attributed to a rising demand, coupled with less supply. The property website’s House Price Index also revealed that one of the highest year-on-year house price increases was Manchester, with a 3.9% rise from last year. Reside, an agency based in Deansgate, commenced how they’d seen a 51% increase in signups across June, compared to the same time in 2019. Their founder and director Anthony Stankard stated that with buyers able to do extensive research before property viewings take place, he has found people ready to buy by the time it comes to any physical viewing. Anthony was quoted as saying: “For every seven viewings, one will result in a deal. Right now, it’s every other viewing so this really is unprecedented.”

A desire for a change of scenery

Many buyers and homeowners have decided that they want a change of outside space following 3 months of city lockdown life, as well as more bedrooms or a change of location all together. Brett Howarth, an estate agent at Yopa, commented on how Bury and Prestwich sales have increased significantly, despite there normally being a drop in these areas around this time in previous years. He stated that there’s “...definitely a push for living away from the city…” and that he had noticed a current trend for prospective homeowners looking to gradually move further out of the city life. It certainly seems that the global situation has made people reflect on their lives. He comments that what was once important for buyers and homeowners before lockdown hit, isn’t necessarily what’s important now. More and more people are outbidding each other for property, and there’s also an increased focus on those looking for property that can allow them to have home offices, study spaces, and outdoor areas.

Stamp duty cut affects

Of course, the changes to the stamp duty tax system have affected the housing market in Manchester too. Previously, homebuyers in England and Northern Ireland would pay stamp duty on property sold for £125k or more. Now though, that threshold is now up to £500k, so those buying property before March 31st, will be exempt from stamp duty. Anthony Stankard commented on how the stamp duty cut lasting until April next year would help buyers make more sensible decisions. However he highlighted how these changes won’t make much difference to first-time buyers as they are already exempt from paying stamp duty on properties worth £300k or less. Despite this, real estate journalist David Thame also commented on how he doesn’t expect the ongoing situation to have many long-lasting impacts. Stated that he doesn’t “...think Manchester is going to be any less popular. We just need people to recover their right minds.” He also stated that those already in a position to buy property should consider the current market. “If you have the money to act and you see something that is genuinely and seriously a long-term proposition, now is probably a good time to buy.”

Act now with TaylorMade

As leading mortgage brokers in Manchester, we’ve been helping people find the very best deals on the market for years. With remortgage applications also increasing, it’s a good idea to act sooner rather than later as remortgaging can take time and lenders will be extremely busy. If you’re searching for a new mortgage deal to take advantage of the current market - contact us today - our team is ready and waiting to help