14 May

Market Update May 2021

Market Update May 2021

We have seen ups and downs across the country and in different regions since the beginning of 2021.

There is a slow but certain increase in asking prices across England and Wales, but mainly outside of Greater London. Outside of London, stock is low which is driving prices up. As people move out of the capital due to changing work habits which seem like a more permanent thing moving forward, this becomes a contributing factor in pushing demand up and thus the prices. The stock levels cannot keep up. Market momentum has increased as buyers quickly purchase what little stock there is. The news of stamp duty holiday extension, 95% mortgages and extension of furlough, has added to the boom in spending. According to the price index of home.co.uk, in March 2021 alone, mortgage lending was at £11.8 billion.

The rents outside of London have also increased due to the same reasons, lack of supply and increased demand as people are moving away from the capital. But it is a different story in the Greater London area. Rents continue to drop due to over supply and lack of demand as people are moving out of the capital and the students are studying mostly from home and not on campus. New listings are increasing in London in contrast to the rest of the country.

However London super prime market, properties over £10million, did very well in 2020. It was recorded as the busiest market for luxury homes over taking Hong Kong luxury market according to Knight Frank.

An interesting time, let’s see where this leads us over the next few months as vaccine rollouts continue, stamp duty holiday is slowly phased out and the furlough scheme comes to an end. 

Image: David Jakab

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