May Property Market Update
May Property Market Update
It continues to be a busy time in the property sector, and with the property market being so intrinsically linked to wider economic issues, it’s no surprise that government decisions and the pandemic are affecting what’s happening locally.
We remain very busy at Dorset Property and we are still seeing huge demand for homes in the Dorset area, both from local buyers and from those relocating from further afield. We are always up to date with the latest UK property market information, so here is a snapshot of some of the UK property market news over the past couple of weeks.
It’s A Moving Business
To start this month’s news update, we have taken some useful statistics from a talk within the removals industry:
Conveyancer recently ran an interview with a couple of businesses in the removals sector which interestingly stated that for one particular company, stats showed “registrations for their removal services in August 2020 didn’t hit the same peaks as they had done in 2019. However, their data from the first couple of months of 2021 has shown that demand for the services is indeed still at an all-time high.”
This is good news for the sector which has faced some speculation recently as showing signs of slowing, but instead correlates with the market we are experiencing which continues to be driven by an overwhelming outstrip of demand vs. supply.
Market Dips, But Prices Stable
The Halifax House Price Index shows that prices in February 2021 were 5.2% higher than the same month a year earlier. The bank says that the market dipped slightly in February compared to previous months but prices remained stable, with the average property price being £251,697.
Russell Galley, Managing Director at Halifax said, “In the longer term, the performance of the housing market remains inextricably linked to the health of the wider economy. The pace and extent of recovery are still highly uncertain and much will depend on the ongoing success of the UK’s vaccination roll out.”
The UK property market will depend to a certain extent on growing confidence in the wider economy, as a result of the continued success of the vaccination roll-out. However, Dorset continues to outperform the UK market as a whole due to its attraction from a lifestyle perspective, in particular to those seeking respite from their busy and crowded day-to-day lives in more urban locations.
Stamp Duty Holiday Extension Welcomed
Perhaps one of the most eagerly anticipated news items of March was the extension of the temporary stamp duty holiday (in England and Northern Ireland), which now runs, for the most part, until the end of June. The announcement came as a relief to many homebuyers, especially those mid-transaction, and there is little doubt that the holiday gave the market the shot it needed.
Indeed, Rightmove’s property data expert Tim Bannister said that the extension “should give tens of thousands of home-movers the chance to complete before the new deadline”. Echoing these thoughts was Zoopla, the property portal, which said that buyer demand soared, but warned that supply remained tight, thus pushing prices upwards.
Although there is little time to start a fresh transaction and complete in time to benefit from this large tax saving, the benefit of the boost in transaction levels across the country will be felt for some time yet. We anticipate the ‘lockdown effect’ will continue to bolster transaction levels in the rural/semi-rural areas for the foreseeable.
Eviction Ban Extended
Landlords and tenants will be interested to know that the ban on tenant evictions has been extended. Zoopla says that under the ban, “bailiff-enforced evictions will not be allowed except in the most serious circumstances, such as cases of fraud or domestic abuse”. Additionally, “the requirement for landlords to give their tenants a six-month notice period before they can evict them has also been extended until the end of May”.
Good news for tenants but for landlords who have issues with a tenant, it may not be so welcome. If you need help managing your property portfolio, we’re always happy to advise and assist.
Key Info To Be Shared Earlier?
An interesting report by Property Wire states that The Law Society and its partners are looking at making “key information for home buyers and sellers available at a much earlier stage in the conveyancing process”.
If the pilot currently being rolled out proves to be successful, it means information normally sourced after conveyancers have been instructed will be available earlier in the process via the TA6 form. This is typically information relating to the property to be purchased, for example, parking arrangements, Japanese knotweed and flooding risks. This could materially change how things are done and provides potential buyers with the details they need to make an informed decision, helping to further secure a sale once agreed.
If you would like to know more about the local market or a particular area within Dorset, email or call; firstname.lastname@example.org, 01305 257357. Additionally, if you need help buying or selling in Dorset then please get in touch.
We’re here to help you get moving.
Added: 1st May 2021