September Market Update
September Market Update
While property prices reach record highs nationwide, the Dorset property market continues to enjoy its own boom. With demand outweighing supply, many buyers are paying more and more to secure their dream property.
Dorset Property has been offering a high quality lettings and property management service since 1984. With six offices throughout Dorset in Blandford, Dorchester, Shaftesbury, Sherborne, Weymouth and Wimborne, we have developed an in-depth understanding of the regulations, the business and the local market.
Here’s our round up of the industry this month:
UK Prices Reach Record High In Buying Frenzy
The average asking price of a UK home has reached a new high according to the property website Rightmove. Figures that are due to be released shortly will show a new peak, surpassing the previous record that was set back in May.
Rightmove also confirmed that the first six months of 2021 have been their busiest since 2000 as buyers rushed to complete their purchases before the phasing out of the stamp duty holiday.
The pricing boom has partly been caused by a shortfall in properties on the market. Rightmove confirmed that 140,000 more sales were agreed in the first half of the year than the long term average, however, there were 85,000 fewer new listings, leading to a shortfall of 225,000 properties, which has put sellers in the driving seat when it comes to negotiating as demand for properties continues to outweigh supply.
Stamp Duty Holiday Winds Down
The government’s stamp duty, a scheme designed to stimulate the housing market during the Coronavirus pandemic, is coming to an end. It has been an overwhelming success, encouraging home movers to act with savings of up to £15,000.
That scheme has now ended, although a continuation of it means buyers can still save up to £2,500 on stamp duty if they complete before the 30th September. However, with delays on conveyancing due to such an increase in buying and selling activity, the length of time it takes to complete a sale means that the Holiday practically no longer applies unless you have already agreed a sale.
Despite the stamp duty holiday coming to an end, the housing market in Dorset is expected to remain strong, as people continue to search for homes which offer a benefit to their lifestyle.
Biggest Rent Rises In Coastal And Commuter Towns
Property website Rightmove has announced the towns and cities with the highest rent increases in the past year with coastal and commuter towns seeing the biggest jump. Rochdale, Farnham and Folkestone have all seen average rents increase by more than 25% as tenants look for more space away from the major cities.
However, the recent easing of Covid restrictions has also seen some of the UK’s major cities begin to make a comeback, with renters looking to move back to city life.
Prices have risen 6.8% in Nottingham, and 3.8% in Liverpool compared to a year ago, however, in London and Edinburgh, rents are still lower than 12 months ago, at 6.8% and 4% respectively.
Self-Employed and Furloughed Workers Refused Mortgages Over Covid Grants
Self-employed people who have received government grants during the pandemic are being refused mortgages by many high street banks.
NatWest and the Royal Bank of Scotland have confirmed they’re not accepting applications from anyone who applied for a self-employment income support grant after 14th July 2020, while employed people who have been on furlough are also not having their applications accepted by many major lenders.
Self-employed workers are also being asked to come up with a higher deposit by some of the major high street banks. Metro Bank has confirmed that a deposit of at least 20% is required, while Santander wants a minimum of 25% before lending to self-employed workers.
That being said, interest rates remain low and mortgages generally easy to obtain.
The North West Continues To Lead The Housing Boom
Prices in the North West of England have risen by more than 15% over the past year, making it the area that’s seen the biggest increase across the UK.
The South West isn’t far behind, with an increase of 12%, and Dorset has increased by 7%,
Wales and Scotland have seen 10%+ increases too, while London has seen the smallest rise in prices, at an average of 5.2%, as buyers have increasingly looked to move away from the city to find more affordable properties with additional space.
Some Homebuyers Still Face Lengthy Search Delays
Homebuyers in some areas are still facing lengthy delays for council land searches. Increased demand has left some buyers facing an average wait time of 55 days for searches to be completed when the target is 10 days. Conveyancers and local councils are playing catch-up after the stamp duty holiday rush.
If you are considering buying or selling in Dorset, we're here to help. To speak with our friendly and experienced team contact us today.
Added: 31st August 2021