House prices current position (Dataloft, February 2021)
- ONS, Halifax and Nationwide all report a sharp increase in annual house price growth since the stamp duty holiday announcement in July 2020.
- According to the December UK HPI (ONS), the UKs average house price is £3251,500, an annual increase of 8.5%.
- In January 2021, Halifax and Nationwide reported a slowdown in house price growth, a -0.3% monthly decline. Stabilisation of price growth could reflect the looming SDLT/ Land Transaction holiday deadlines.
- Rightmove, Zoopla and the Dataloft Demand Index all report good housing market demand levels, and while stock remains constrained, prices are likely to be supported. Source: Dataloft, ONS, Nationwide, Halifax
House supply and demand (Zoopla, January 2021)
- Although the stamp duty holiday did help to increase the number of properties on the market for sale, the latest information indicates that 70,000 households who agreed on a sale in 2020 are at risk of missing the stamp duty deadline – the case for a short, 4-week extension grows.
- Despite the recent lockdown, demand for homes has posted the usual seasonal rebound, which has been stronger than last year. Demand for homes is up 13% on this time last year, with new sales also agreed up 8%. This rebound is broadly uniform across all regions and countries. It is a continuation of above-average demand and market activity from 2020 H2. The ongoing impact of the pandemic continues to drive moving intent amongst homeowners.
- The flow of new supply onto the market is slower than this time last year, down 12%. Sellers remain cautious in the face of 3rd lockdown, higher case numbers and calls for people to limit movement, even though the housing market remains open for business. We expect sellers to list homes once case numbers start to fall sharply and/or we move back to regional tier-based restrictions.
Update 3 March 2021 – Chancellor Rishi Sunak announced the Spring Budget. In this, he stated that there would be an extension to the temporary cut in Stamp Duty Land Tax in England and Northern Ireland until September will support the housing market and protect and create jobs. £0
If you plan to extend your property portfolio in Nottingham or Mansfield and would like some further information relating to the local property market, please contact us by calling 0115 704 3163 or 01623 277115. Alternatively, you can email us via our contact us page – click here.