Buyer surge to beat stamp duty holiday expected to continue in early 2021
“Accidental savers” who put money aside during the lockdowns are piling into the housing market and will drive up UK asking prices by four per cent in 2021.
As many as 650,000 properties are due to change hands in the first quarter of next year while fresh buyers will try to find, buy and complete on a new home before the end of the stamp duty holiday window on March 31, according to Rightmove.
“The new year is typically a time for resolutions and many will see it as an opportunity to draw a line under 2020, which may well include a fresh start in a new home for those who have not already acted,” says Tim Bannister of Rightmove.
“Interest rates remain at near-record lows and we expect greater availability of low-deposit mortgages next year. These two factors will help to oil the wheels for home purchases by the accidental savers who have collectively saved £100 billion during the pandemic restrictions.”
The surge of demand to move house following the first national lockdown, stoked by the Chancellor’s tax break, has pumped prices up 6.6 per cent over the last 12 months to December taking the average UK asking price to £319,945.