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Why is the housing market booming right now?

If you only have even the slightest interest in the property market, you’ll no doubt be hearing different things about what’s happening in the housing market currently.

In the same week you could hear that house prices are going up, and also that they fell a few months ago, as each report can be looking at a different time period.

At Lennon James we track what’s happening at the start of the home-moving journey. This means we’re able to spot trends within the data being presented. With this, we can give our clients every opportunity to make informed decisions on what to do with their home move and when.

Key takeaways on the housing market this month:

1. It’s a great time to sell your home

Properties are selling within 45 days on average, which is almost three weeks faster than the start of the year. This is the fastest pace we’ve ever recorded on Rightmove.

The number of potential buyers is also at a record high right now. This can put you in a good position to get a good price and a quick sale if you’re thinking of selling. The best way of finding out exactly how much your home is worth is to arrange a property valuation by a local estate agent.

2. There are more buyers looking to move than the number of homes there are for sale

But in the past two months we’ve seen more homes coming up for sale. More than 260,000 new sellers came to market in the last two months alone. If you’re looking to buy, you’re likely to find it’s most competitive right now for homes with three bedrooms or more. We can let you know as soon as a new property is listed in your perfect location if you sign up for an Instant Property Alert.

3. What’s happening to asking prices right now?

Asking prices are at a record high and up in all regions compared to before the pandemic. Since the first lockdown in March 2020, asking prices have risen the fastest in Wales, followed by the North West of England. House prices locally have risen 7.3% since March 2020 with the average asking price of a property a staggering £382,909.

The average asking price of a property has now reached a record high of more than a third of a million pounds (£333,564) in Great Britain. In London, prices are at a standstill. But at £640,000, the average cost of a home in the capital is still almost three times higher than in the northern regions of Britain.

4. What’s the latest on rental prices?

Across Great Britain, we are seeing huge demand for rental homes in this exceptionally busy housing market. Asking rents outside London keep rising and have hit another record high. This is at an average of £982 per calendar month, which is the highest annual rise since 2015. Rents are still on rise with an annual increase of 3.9% from £1,161 per month to £1,207 per month and a 10.8% increase since 2016 (£1,089 per month.)

5. What’s the advice for first-time buyers?

If you’re a first-time buyer hoping to find a home in a buzzing city centre, we might have some good news for you. It’s now cheaper to buy a home in some of Britain’s largest and most popular city centres than it was at the start of the year. You can find out more here.

So now is a good time to buy a place, while prices are cheaper than normal and mortgage lenders are offering competitive low-deposit loans.

Also, in England and Northern Ireland, as a first-time buyer you won’t pay any stamp duty tax on the first £300,000 of a property. In Wales, you’ll pay Land Transaction Tax on the portion of a property priced above £180,000 from 1st July 2021 (the current threshold is £250,000.) In Scotland, Land and Buildings Transaction Tax applies to first-time buyers of properties priced over £175,000.

Our Managing Director Jon Brierley tracks all the numbers for us. Here’s his advice this month:

Family homes with three bedrooms or more are like gold dust currently. So if you are considering a move and have a sought-after home like this, I’d be considering coming to market now.

If you have the budget to upsize but will be selling a property before you move, I’d advise getting your own property on the market first before you look. This puts you in a much stronger position when you do find ‘the one’.

If you need a mortgage, and especially if this will be your first time applying for one, do your research on what’s available to you. Get what’s called a ‘Mortgage in principle’ before you ask agents to view homes you’re interested in. You’ll be showing them you’re serious and that you have all your finances already sorted.

For any help or advice the team are always on hand to answer any questions you may have so don’t hesitate to contact us.