Stamp duty cuts and an upsurge in the demand for homes having gardens during the pandemic, has reportedly fueled the housing industry to its highest in the past four years, as per the estate agents and surveyors.
Over 44% members of RICS’ (Royal Institute of Chartered Surveyors) have registered a rise in prices, the highest it has been since 2016, as per the latest monthly snapshot. These numbers, compared with 13% in July and also marks a dramatic change from the May-registered -33%. All parts of the United Kingdom are currently witnessing price rise. The only exception to this growth is seen in London, where members of the Rics reported that regional prices have stayed almost flat for the last two months.
The price figures from Rics signify a rise in the interest in homes having gardens, majorly due to the COVID-19 pandemic, as 83% of these surveyed anticipating demand for these homes to increase over the coming two year, with 79% predicting increasing demand for properties that are near green space.
Rics also stated that August’s pick up in the housing sector was augmented due to people looking to benefits from the stamp duty holiday.
The cut, which was announced earlier this year by the Chancellor of the Exchequer, Rishi Sunak, means there would be no stamp duty due on houses priced below £500,000 across England as well as Northern Ireland, and approximately £250,000 throughout Wales and Scotland, with specific discounts imposed above those thresholds.
Over 63% of surveyors as well as estate agents have reported a rise in buyer interest through the month. However, given the situation, the long-term view stays more cautious.
Meanwhile, other surveys done by renowned mortgage lenders Halifax and Nationwide, have also reported a robust increase in house prices.
Director of London estate agent Benham and Reeves, Marc von Grundherr stated that the UK housing industry continues to expand exponentially. Additionally, the stamp duty reprieve is attracting new buyers and causing houses priced below £500,000 to be sold for a much better price.
Source credit: https://www.theguardian.com/money/2020/sep/10/confidence-in-uk-housing-market-at-four-year-high-say-estate-agents