Stamp duty for sale

Low interest rates plus stamp duty cut to boost UK house prices

The UK housing market is accelerating quickly with current conditions increasingly favouring buyers. Latest predictions show how this could affect house prices over the coming months.

Buyer interest across the UK property market has surged in recent weeks, and was certainly boosted exponentially by the recent stamp duty changes. After Rishi Sunak raised the tax threshold to £500,000 for homebuyers, demand for property hit record highs.

Now, new forecasts from Really Moving show how this could impact house prices. According to their research, prices in England and Wales could rise by 1.9% between June and September. This takes into account a dip in August of 1.4%, followed by a 4.7% rebound in September.

The firm believes that as more buyers flock to the market and transactions begin to complete, the housing market will receive a much-needed boost. Both buyers and sellers who had held off will return in record numbers, says the firm.

Rob Houghton, chief executive of Really Moving, said: “Buyers took a cautious approach when the housing market first reopened, but we’re now seeing a clear surge in activity levels and a corresponding rise in sale prices being agreed.”

“There is little positive economic news on the horizon, but buyers who are confident in their jobs and financial position may be deciding to press ahead now rather than wait indefinitely – especially as many have already held off for months or even years awaiting a Brexit resolution.”

Low interest rate environment ideal for investment

Chancellor Rishi Sunak raising the stamp duty threshold to £500,000 will certainly play a part in increasing transactions. Many buyers will now save thousands as a result of the tax cut. This applies to owner-occupiers as well as investors and landlords, who still have to pay the 3% surcharge.

Another major factor benefiting homeowners and buyers right now is low interest rates. According to Rob Houghton, the stamp duty change along with attractive rates on borrowing “will encourage [buyers] further”.

With the Bank of England base rate remaining at a historic low of 0.2%, many lenders are offering cheap deals. Despite early restrictions on valuations and lending early on in the pandemic, the market has now opened up. Product numbers are rising, with extremely competitive rates available.

Specialist broker Mortgages for Business has urged landlords and investors to expand their portfolios now. For those in a position to remortgage or reinvest, the climate is working in buyers’ favour.

Stephen Olejnik, managing director, said: “Landlords have been preparing since the start of the lockdown, remortgaging to enlarge potential war chests with an eye on bagging bargains in the future. First-time buyers don’t have that flexibility and owner-occupiers haven’t been remortgaging in the same way.

“That means landlords are currently very well-placed to seize the day. But that advantage won’t last forever. That’s why smart investors will start expanding their portfolios immediately, rather than waiting and then scrambling to try to do deals at the last minute.”

BuyAssociation has a wide selection of property investment opportunities across the UK. Many of our properties are below the new £500,000 stamp duty threshold. Get in touch with our team to find out more, or sign up for free for early access.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:

aerial-view-uk-houses

STAY AHEAD OF THE MARKET

Sign-up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
UK holiday let

FIRST FOR NEWS AND KNOWLEDGE.

Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:

 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

 

+852 6699 9008

Open from 9am-6pm HKT