UK Property Market Update March 2021

The team at Regency Invest have never been so busy, with buyer demand at an all-time high as the supply of property is constrained and high levels of price growth forecast over the next 5-years.
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Demand for UK Property at All Time High
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Buyer demand has been strong from the start of 2021, with one of the busiest sales markets in years. The value of homes sold subject to contract in the first 15-weeks of 2021 was almost double that in 2019 and 2020. Since March, demand has increase yet again, to levels comparable to those last seen in the wake of the first lock-down in the summer of 2020.

The number of homes being listed for sale has not kept up with buyer demand for most of the last 12-months, eroding the total number of properties available for sale in most markets. In the first half of April, the number of properties for sale was nearly 30% lower than average during the same period in 2017-2019.

The high levels of demand that are not being matched by supply will continue to support pricing. Annual price growth in the year to March 2021 continues to outperform in regions where properties are more affordable. At a city level, Manchester and Liverpool remain at the top of the price charts, with 6.5% and 6.3% annual growth respectively.

The lack of supply coming to the market has been exacerbated by the rise in activity among first-time buyers who have nothing to sell.

Highlights
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• High volume of sales is eroding the supply of homes for sale

• Stock levels are down nearly 30% in April this year compared to the same period in 2017-2019

• Annual house price of +4.0% in March, with the strongest price growth in Manchester at +6.5% and Liverpool at +6.3%

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Buy-to-Let Property in Cities with the Highest Price Growth

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Stamp Duty Land Tax Holiday Extended
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The March budget saw the widely anticipated extension of the government’s Stamp Duty Land Tax holiday. In England and Northern Ireland, the threshold for Stamp Duty Land Tax will remain at £500,000 until 30th June, which many buyers have taken advantage of.

It’s not too late to take advantage of the discounted rates as from the 1st July to the 30th September, the threshold will be reduced to £250,000, which will mean that more than 50% of buyers in England will pay no stamp duty.

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