Now is a great time to sell if you are looking to maximise value
An unexpected consequence of the pandemic has been a boom in house prices. A Nationwide index recently revealed that nationally, house prices had accelerated another 0.7% in June, taking the annual increase to 13.4%, the fastest recorded growth in house prices since November 2004. The average house price in the UK in June was £245,432, according to the monthly index.
A record number of people are looking to move and demand is outstripping the supply of available properties, meaning homes are selling faster than ever before, with many being sold either at or above the asking price. Both coastal and countryside locations are proving popular and this is pushing up prices in sought after towns and villages throughout Essex and Suffolk.
Large houses have achieved a premium with values of detached houses of more than 4 bedrooms achieving nearly 5% more in growth than the wider market, according to Rightmove. The number of sales agreed on properties over £500,000 was up 49% in May, compared to May 2019, despite buyers being aware that they would miss the maximum Stamp Duty savings.
There is lack of good quality available stock and as a consequence, the market is showing signs of slowing. Sales agreed in May were up 17% on the same period in 2019, whereas in April sales agreed were up 45% on 2019 figures according to Rightmove.
Joseph Hall, Managing Partner of Fenn Wright said: “House prices have been rising rapidly, fuelled by a change in priorities from buyers, low borrowing costs and the opportunity to secure Stamp Duty savings. From today, the tapered Stamp Duty reduction means the maximum saving will drop from £15,000 to £2,500 until the end of September, however we believe it will remain a sellers’ market throughout the summer, as buyers continue to race for space.”
If you are considering selling, now is a great time to attract a large number of potential buyers and now, more than ever, sellers need to ensure they appoint an agent who will make sure the selling price is maximised and the market is properly explored.