With other industries having ground to a halt over the summer, there are some that have proved to be booming. One of the biggest that we have seen recently is actually in the property market. In fact, the UK housing market has just recorded its busiest month in over 10 years.
Going Against the Norm
Usually, in summer we tend to see a lull in house purchases in the UK. However, this is completely different compared to what we have actually seen this month. According to the property website Rightmove, the rulebook of yearly sales has essentially been written and the usual slow period is now a lot livelier.
This is in part thought to be due to our building frustrations from the 2020 lockdown. People who were unable to buy earlier in the year have been forced to delay their plans. Any other year we would have seen a wider spread of purchases as usual. However, the unique circumstances brought about by the COVID-19 pandemic has resulted in a concentration of energy around this one month.
More people are buying because they have not been able to in other months. This has resulted in monthly figures being up by 38% compared to the same period last year. Despite the concerns of the pandemic, more and more people are taking advantages of some of the changes we have seen arising in the property market.
What Changes Can We See?
Having so many people searching for properties has had another knock-on effect on the wider market. Asking prices are dropping steadily across the rest of the UK. The national average drop is 0.2% but this is actually as low as 2% in London, which also has a rise in the number of properties also on the market. However, in Scotland, interest and prices have rocketed. On the Southside of Glasgow, for example, some offers are between 10-25% over the Home Report!
A crucial change that we have seen influence this activity was a change in stamp duty. July oversaw the arrival of a stamp duty holiday of up to £500,000 in England and £250,000 in Wales and Scotland. This break no doubt helped to drive more to consider buying or selling.
There has been a good increase in purchases of all sorts of properties. The number of sales for larger properties is up by 59% and that of first-time properties is up by 29%. This has no doubt been influenced by the stamp duty holiday, as there has also been a massive boom in homes worth between £500,000 and £750,000. People’s housing priorities and preferences have changed, and they are using this time to capitalise on it.
Ready to Take Advantage of the Markets?
Do you want to use the current market positions to upgrade your existing home? Contact MM Legal now. Our experienced solicitor Erika Watt will be able to advise on the legal aspects of selling or buying a home. If you wish to purchase a new home in Scotland during this unique period, we will be able to help you secure the new property of your dreams. Do not hesitate to get in touch with our team to find out more today.
