Welcome to Paul Simon Residential Sales
Entering into the purchase of a new property presents a number of challenges, especially
when aspects of the purchase do not proceed quite as anticipated.
We understand the frustrations
that can be caused having experienced the same ourselves as purchasers.
Spring In The Housing Market Step
The start of the traditional spring selling period saw the number of sales agreed for the first week in March up by 12% on 2020 despite the current shortage of available stock. Rightmove data shows there is a surging level of demand in the UK housing market, making for one of the strongest starts to the spring season ever.
A record number of prospective buyers are enquiring about properties on Rightmove. Demand in the housing market is 34% higher than the strong pre-lockdown market from a year ago. The average asking price of a property going up for sale has increased by 2.7% in the last 12 months. This has increased the national average to £321,064. Additionally, asking prices grew for the second month in-a-row. A rise of 0.8%, or £2,484, was recorded in March.
Measures announced in the Spring Budget, not only included the stamp duty holiday extension but the mortgage guarantee scheme, has boosted the housing market. Since the day of the announcement, Rightmove have said that they have seen a spike in online property searches.
Already high levels of buyer demand caused by the lockdowns has continued to surge since the start of the year. This demand will be further boosted, as from the start of April the new Government guarantees enabling lenders to bring back 5% deposit mortgages begins.
With demand for homes so high, if you are thinking of moving, now is the perfect time to get your home on the market!
Stamp Duty Holiday Extension Until June 2021
Purchases up to £500,000 will continue to be free from the tax until this date – with homes bought up to a value of £250,000 being extended even further to the end of September 2021. Sunak announced on 3rd March “To smooth the transition back to normal, the nil rate band will be £250,000, double its standard level, until the end of September – and we will only return to the usual level of £125,000 from 1 October.”
This news will be a huge relief to the industry as a whole, with widespread worry around the 160,000 home sales stuck in limbo and at risk of falling through if the holiday period was not extended. It is thought that the three-month extension is costing an estimated £1bn, adding to the £271bn the government has already borrowed this financial year to deal with Coronavirus.
The Chancellor also confirmed a new scheme to provide mortgages to homebuyers who put forward only a 5 per cent deposit, encouraging banks to lend to those with smaller savings pots. The government will take on some of the loan risk in the form of a state guarantee.
“A policy that gives people who can’t afford a big deposit the chance to buy their own home,” he told MPs. “As the prime minister has said, we want to turn generation rent into generation buy.”
It was confirmed that the Government would back the loans, which will be available on homes costing up to £600,000. Banks and building societies are not obliged to offer the mortgages, but Sunak said in his speech that several have already committed to do so. The scheme will begin in April and will be available on new mortgages taken out until 31 December 2022.
The number of people owning property under the age of 40 has plummeted over the years as young people face rising rent costs along with soaring house prices. It is hoped that with the new 5% deposit mortgages back on the table, that more people are able to afford these smaller deposit amounts required in order to buy a home.
Boxing Day property search hits new high
Zoopla announced it saw the busiest run up to Christmas for over a decade, with the market recording sales agreed on more homes in 2020 than in 2019 during the same period. They also announced a 70.5 per cent increase in traffic on Boxing day as people look to take advantage of the stamp duty freeze. This is set to intensify in January given the now imminent end to the stamp duty holiday, which is set to bring more hungry buyers into the market, keen to find and complete on their new home before the stamp duty deadline expires at the end of March.
Boxing day is always a good indicator of how the market is likely to perform at the start of 2021, so to see such huge numbers of interested potential buyers is very promising. A contributing factor will certainly be the national lockdown that is still ongoing, with more people at home having the time to look at what is on the market, not to mentioned revaluating if they have enough space during a period where the whole family is around.
Once the stamp duty holiday concludes at the end of March, there will likely be a slowdown in sales completions as the impetus to move amongst buyers motivated by stamp duty savings dissipates. This will have a knock on effect on transaction volumes later in the year as stamp duty is reintroduced.
Zoopla’s are anticipating house price growth across the country in 2021 to be around 1.0 per cent on average – this will run within a narrow range from 1.75 per cent in Scotland to just 0.5 per cent in the East of England and the North East.
Overall it’s not all doom and gloom out there, especially within the property sector. With the hope of successful mass vaccination and a rising trend in people looking to move home, as a year of homeworking has led people to re-evaluate their housing needs, there is confidence across the industry that momentum will continue into 2021.
"Fair and honest advice"
"We went to Paul Simon after a disappointing few months with a different agent on Green Lanes. They had been highly recommended to us by friends of ours in the area. Richard, Abdul & Gary were great! Quick to respond to questions and worries and also to situations that arose along the way. They dealt not only the business aspect but also with the emotional side of selling our home with ease & professionalism."
"Very helpful and professional team"
"Selling our family home which my parents purchased 54 years ago wasn't just selling bricks and mortar for us. I wanted an agency that I could trust, one that would provide first class customer service and who would keep me updated on the sales process as well as the sales strategy. I was kept well informed throughout, dealing with Richard, Abdul and finally Danny who achieved the sale. All three were extremely professional, provided valuable guidance and exceeded the standard of service I was expecting even though my expectations were high from the beginning. The agency fee I paid was well earned, every single penny. This really is as good as it gets."
"Straightforward and trustworthy"
"These guys are professional and committed. They have worked tirelessly for us through a complicated sale, and never gave up. We are eternally grateful to them!"