With the Stamp Duty extension having come to an end on 30th September, there is a great deal of speculation as to what will happen next.
Over the past 18 months, the region as a whole has performed well. Annual growth to July 2021 for Blackburn with Darwen was up 12.6%, according to figures from the Land Registry. The highest performing borough in the region was Rossendale, which saw an increase of 19.9% in average house prices, with properties in Hyndburn seeing a below average increase of 4.4%.
In line with the general trends reported across the country, demand has been outstripping supply for some time, with those properties that do come on the market being quick to sell and achieving strong values.
Now that some of the urgency around moving house before a certain date has been removed, there will be a period of time in which the property market can stabilise. Whilst much has been made of homeowners looking to change their way of life as a result of the pandemic, wanting a dedicated area for home working and opting for homes with more outdoor space, property investors and second home owners have also played their part in the demand for homes compared to supply levels.
Whilst the general positive sentiment in the housing market may mean continued activity from investors, the higher prices generally could prompt a sell-off. There is also the question as to what will happen to the deals that didn’t make it over the line before the 30th September. Chains could break down and there could be an increase of properties becoming available for sale again.
Depending on how the market reacts to the removal of the Stamp Duty holiday, a period in which demand is less heated could be good news for home movers.
Due to unprecedented transaction levels causing backlogs of work, recent figures suggest that it took an average of 320 days to sell a property in the first half of 2021, a 16-day increase compared to the six months prior. With fewer transactions predicted, this may settle down over the coming weeks and months.
From our perspective, we have seen a great deal of activity over the course of the Stamp Duty holiday with a big increase in demand for residential surveys across the region. Although this has reduced slightly the closer we got to the end of September and the cut-off date for lower Stamp Duty rates, we are still receiving new enquiries on a daily basis.
For more information on any of our services in relation to residential properties, including property valuations, RICS Home Survey Reports or Building Survey Reports, please get in touch.