0207 079 1430

MAYFAIR (ASSOCIATED)

click to enable zoom
loading...
We didn't find any results
open map
View Roadmap Satellite Hybrid Terrain My Location Fullscreen Prev Next

OCTOBER 2021 MARKET COMMENT

Here’s a quick overview of the property market this October.

According to the Nationwide, annual house price growth last month was still very strong at about 10%, although this was down from 11% in August, and no doubt supported by the tail end of the SDLT concession which has now come to an end.

It is interesting to note that the average house price has risen by over £28,000 since that stamp duty concession was introduced in July 2020. This is 12 times more than the average SDLT saving enjoyed by buyers! The average house price, at £267,587, has now crossed into a higher SDLT threshold too! So rather than helping struggling buyers, the concession has supported massive and possibly unexpected house price growth. Funny old world!

Over and above any concession, it would certainly seem that sheer confidence, coupled with alternative financing, strong employment, low interest rates, and an economy rebuilding itself are all playing their part in proving once again that British real estate remains an exceptionally strong investment – and a tax free one for most homeowners. Rents are up too – by 7.5% over the year (Source: Homelet)

Could this be why 44% of landlords are expecting to buy more properties this year? (Source FJP Investments).

So often though, the figures we see are already out of date by the time they are published by the Land Registry or a mortgage lender. Perhaps changes in asking prices might be a better indicator of the future than looking at the sales completion figures of the past. According to Rightmove, the average price of property coming to market hit a record high after rising by 0.3% last month (that’s a more modest annualised figure of 3.6%, which is about the same as many forecasters are predicting will be the average annual growth for the next couple of years at least).

So things are stabilising, possibly due to a 14% increase in new properties entering the market, although buyer demand per property for sale is still more than double pre-pandemic levels. Of course, it’s the “power- buyers” who are successful in securing the property they want. These are the buyers who have nothing to sell or are already under offer or exchanged; they have their mortgage agreed in principle and they have a good conveyancer ready to go. And if you don’t yet fall into this category because you have a property to sell – well you know who to call!

Share this post

Other post in

FEBRUARY MARKET COMMENT

Our February Market Comment It’s well known that confidence is key to a healthy property market. Or it used to be at least. The pandemic didn’t dent it – quite the opposite in fact, with the average house price having risen over 11% in the past year (Source: Nationwide). Could issues such as rapidly rising energy prices, an unstable government, uncertainty in the Ukraine, and

Read More »

JANUARY MARKET COMMENT

A year ago, we predicted that 2021 would not be able to sustain the 7.3% house price growth experienced in 2020. Even the most bullish economists predicted no more than a 4.5% increase for 2021, yet, according to the Nationwide, 2021 closed with a 10.8% increase in the average UK property price.  Who’d have thought, during a severe pandemic, and as the effects of

Read More »

Compare Listings