House Prices set to increase by up to 14% by November
Property prices are set to increase
Platform Reallymoving has carried out research which suggests that average property prices may increase by up to 14% by November.
This prediction is based on sales which have already been agreed.
Due to lockdown there is a huge pent up demand in the property market. Since reopening this pent up demand has been released. Many individuals are also rushing to purchase property before the stamp duty holiday ends in March 2021.
How much are they set to increase by?
As it stands, Reallymoving argues prices are set to increase by 4.7% in September. Followed by 11.4% by October and 14% by November. These figures indicate a promising couple of months for the property sector.
Rob Houghton, chief Executive of Reallymoving, states that individuals are motivated to move now despite the spike in property prices making stamp duty savings relatively obsolete. For those with high levels of equity in their property and little debt, gloomy economic forecasts are pressuring individuals to move now rather than wait.
The number of first-time buyers in the market has dropped by 19%. This is because they are unlikely to benefit from the stamp duty holiday.
Low deposit mortgages are also increasingly difficult to find. As a result they are unable to save the large deposit many brokers now require.