March brought ‘something of a resurgence’ to the property market, says the Halifax, part of Lloyds Banking Group.
The stamp duty holiday has been extended to June 30th 2021, which has induced this renewal of the market. As a result, the average house price has increased from March 2020. It has incremented by over £15,000 in the last 12 months, seemingly eluding expectations due to multiple lockdowns and restrictions.
“Casting our minds back 12 months, few could have predicted quite how well the housing market would ride out the impact of the pandemic so far, let alone post growth of more than £1,000 per month on average,” said Russell Galley, managing director at the Halifax.
| 2020 | 2021 |
|---|---|
| Typical house price is £239,067. | Typical house price rises by 6.5% to £254,606. |
Whilst this may be received with open arms by many, first time buyers are subject to a disadvantage in this situation, as they have no property to sell at that higher rate. If the pandemic has negatively effected them economically, this could mean their financial position is in no state to invest in a property.
The Government has recently created a greater choice of mortgages, which requires only a 5% deposit of the loan taken. Read more about the Government’s Help To Buy 2021-2023 scheme.