14
May
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