One of the biggest stories this year has been the booming property market. Prices have risen month-on-month in most regions in the UK with demand (especially for larger family homes) and these market conditions show no sign of abating. According to Zoopla, average asking prices are 30% higher since the market peak in 2007.
The changing priorities as a result of the pandemic has meant that we are seeing a lack of available properties, especially larger family homes as people took advantage of the LBTT holiday. Prices have been pushed up and many people sold before buying, moving into rented accommodation whilst they waited for their ideal home to hit the market. It’s a sellers’ market, with stiff competition for each house that comes up for sale especially as there is a record low of properties available. This has led to house prices being driven higher by this mismatch between the number of homes for sale and a surge in demand from potential buyers.
In June this year, house price growth continued with property values increasing at an annual rate of 5.4%. This figure is more than double the growth of 2.2% seen during the previous 12 months. What’s more, the number of sales agreed was 22% ahead of the average levels in 2020. Buyer demand is 80% higher compared to last year. House price growth in Glasgow stands at 3.5% and 2.9% in Edinburgh.
There has been a 25% fall in the number of homes on the market in the first six months of this year compared with the same time in 2020.
For first time buyers it could be a good opportunity to buy an apartment as buyer interest for houses has more than doubled since the start of the pandemic, whereas demand for flats is broadly unchanged from a year ago. However, it’s worth noting that first-time buyer numbers are up 25% compared with this period last year.
The good news is that earlier this year the Mortgage Guarantee Scheme was launched to help people onto the property ladder – enabling them to secure a 95% mortgage subject to meeting the lender’s criteria. This kick started a range of mortgage products for those with only a 5 or 10% deposit.
For home movers, the number of homes for sale has failed to keep pace with demand from potential buyers since January, with no sign of this easing off. You will be in a strong position to secure a quick sale on your existing home at a good price – particularly if you own a house with three or more bedrooms. However, you may find that securing a property to buy is challenging – but being able to buy without selling will make you an attractive buyer. We also recommend that you have all paperwork and a mortgage offer in place to ensure you’re in a strong position to proceed with a purchase.
Clyde Property is a leading independent, multiple award-winning estate and letting agent with more than 30 years’ experience in selling and letting property in Scotland. Just call your local Clyde Property branch today for friendly, impartial advice on finding your next dream home.
