The property market is gradually showing signs of recovery and a number of new trends are emerging. It’s likely that these trends will continue to influence the market over the coming months.
Sales rise due to high demand
Pent-up demand and incentives including the temporary Stamp Duty holiday have provided a much-needed boost to the property market and homes are reportedly selling faster than ever before. Research from Zoopla shows that in the 90 days to mid-August, a three-bedroom house sold in an average of 24 days – 12 days faster than the previous year1.
There are signs, however, that buyers are taking more time to consider what they want from their homes, with one-bedroom flats now taking the longest to sell at 34 days. Meanwhile, thanks to a rise in demand for outside space following lockdown, properties with south-facing gardens are being priced 7% higher on average2. These trends are also being seen worldwide, with a survey of buyers from 44 countries revealing that 40% and 37% are looking for waterfront and rural homes, respectively3.
Moving to the country
With working from home becoming the norm for many, large numbers of buyers are looking to move out of London, big cities and pricey commuter areas. Idyllic rural areas are becoming increasingly sought after as a result, with enquiries about village properties soaring by 126% in June and July compared to the same period a year ago2.
First-time buyers choose longer mortgage terms
Getting on the property ladder has long been a struggle for many first-time buyers. In a bid to make monthly payments more affordable, 45% of first timers opted for a mortgage term of 30 years or more in 2018–19.
Despite many lockdown restrictions being lifted, local lockdowns are likely to continue over the coming months, presenting new challenges for regional property markets. In these ever-changing times, seeking professional advice can help ensure your property aspirations go to plan – so don’t hesitate to get in touch with an independent mortgage broker.
1Zoopla, 2020, 2Rightmove, 2020, 3Knight Frank, 2020