The UK Property Market Has A ‘Spring’ In Its Step This Month

Published: 29/03/2021

As the long, cold, winter of lockdown ends, there is vast cause for optimism in the property market as we move into spring. Not only has the incredible pace of the Coronavirus vaccine roll-out continued, giving business’s confidence that the roadmap out of lockdown will remain on target, but the Spring Budget also provided some excellent benefits for homebuyers.

According to Rightmove the number of potential buyers enquiring about each available property on its website hit a record high in February and was 34% higher than this time last year, just before the UK went into the first national lockdown. Furthermore, the average asking price for the first two weeks of March has increased by £2,484 or 0.8%.

Prices are predicted to increase further as Spring progresses.

Spring Budget announcements benefit buyers and Generation Rent

Stamp Duty holiday extension:

Having been warned about the disastrous ‘cliff-edge’ scenario that would occur if the Stamp Duty Land Tax (SDLT) holiday were to abruptly end on 31 March, Chancellor Rishi Sunak extended the holiday until 30 June. Until then SDLT will not be applied to properties under £500,000. From July to the end of September, the tax-free threshold will be set at £250,000, double its pre-July 2020 level. This tapering-down strategy is designed to fall into line with the predicted economic upswing brought on by the end of Coronavirus restrictions, mitigating the risk of the property market retracting once the SDLT holiday ends.

Government-backed low-deposit mortgage lending:

Boris Johnson is passionate about transforming ‘Generation Rent’ into ‘Generation Buy’. At the 2020 Conservative Party Conference he stated:

“We need now to take forward one of the key proposals of our manifesto of 2019: giving young, first-time buyers the chance to take out a long-term, fixed-rate mortgage of up to 95% of the value of the home – vastly reducing the size of the deposit.”

This pledge has now been enacted. From April 2021, 95% government-backed mortgages will be available to all buyers of properties costing up to £600,000. According to a study by Rightmove, this accounts for 86% of all homes currently on the UK property market.

Mr Sunak verified that “several of the country’s largest lenders including Lloyds, Natwest, Santander, Barclays and HSBC will be offering these 95% mortgages from next month.” He also confirmed that “more, including Virgin Money, will follow shortly after.”

In summary

After such a difficult year, the fact that the current property market benefits both buyers and sellers is a cause for optimism. To ensure you get the most out of the present advantages and protect your best interests, it is imperative to instruct an experienced Conveyancing Solicitor. Not only will they ensure that the right property and title searches are conducted, but a Residential Property Lawyer will also review your mortgage offer and ensure you are aware of your obligations and liabilities.

Our Residential Conveyancing Solicitors can provide expert advice on all aspects of property sales and purchases. Please get in touch with Kerry Walker, our Conveyancing Manager at Kerry.Walker@gw.legal to discuss how we can help.

Who are GWlegal?

GWlegal are a property solicitors based in Liverpool, specialising in buying or selling, remortgage, declaration of trust, bridging and buy-to-let landlords.

If you have a legal matter you wish to discuss don’t hesitate to get in touch. You can call us on 0345 373 3737 email us discuss@gw.legal with your question.

Who are GWlegal? We’re a national firm with local values.

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Content correct at time of publication.