There is no denying that the property market has weathered some significant challenges in 2020; the fallout from Brexit and then Covid-19 delays. However, since Haslams reopened and with the news of a Stamp Duty holiday, we are seeing purchasers in Reading taking the chance to capitalise on the emerging market momentum.
Stamp Duty Holiday
With the Stamp Duty holiday in full effect, potential purchasers are more motivated and in a better position to move now. In fact, the majority of our recent sales paid no Stamp Duty with the rest paying a smaller sum. To understand the significance of the saving we have broken it down below:
When we look at July 2019 versus July 2020, the average house price for properties under the threshold for the Stamp Duty relief profited from a 3.8% price increase. Compared to the national house price increase of 2.1%, Reading continues to be a good choice. Throughout the recent period it is clear that Reading has remained resilient, with prices returning to pre-Brexit, pre-Covid levels.
So why buy now?
During lockdown, purchasers have considered what they need from their next home and unsurprisingly this includes more space for their (future) family or home-working and an outside area for fresh air and exercise. Anecdotally our purchasers have stated they are no longer wanting to put their life on hold and for our vendors who have priced strategically, the levels of enquiries are positive.
Another big draw for purchasers is the low interest rates. Earlier this month, the Bank of England announced it would hold its base rate at 0.1%, however this historically low level will not be held indefinitely with mortgage rates already starting to creep back up. Many purchasers are therefore moving quickly to take advantage.
Overall, we have seen that the Stamp Duty holiday and personal circumstances of our purchasers, combined with the pent up demand for property have compounded the desire to move onwards and upwards during the summer and as we continue towards the start of the colder months, things are unlikely to slow down just yet.