Is now a great time to maneuver house?

More buyers are bidding within the asking price for properties than at any point in the last seven years.

The UK’s property market is flying right now, with buyers battling to secure sought-after homes before the end of the stamp duty holiday.

But has become really the time for you to go ahead and take leap? Here, Which? analyses what’s happening to house prices and mortgages that will help you decide whether to take action in a hot market, or hold back until things cool off.

Buyers compete for properties as demand rises

New research by NAEA Propertymark found 1 in 6 properties (16%) sold in excess of their selling price in March – the greatest proportion recorded in seven years.

In the same month, a third of properties (33%) sold for below their asking price, the cheapest proportion since NAEA started keeping records.

The estate agency group says there are currently 13 buyers for each home on the market, as the stamp duty holiday continues to entice buyers.

Mark Hayward of Propertymark says: ‘The pandemic has meant many householders residing in urban and city areas have reconsidered their lifestyle and are reprioritising where and how they want to live, particularly with working from home becoming the brand new normal.

‘The imbalance of demand and supply means it's an extremely strong sellers' market; properties can sell quickly and for over the selling price, and this is something we expect continues in the coming months.’

How the stamp duty cut has impacted sales

The government’s decision to temporarily cut stamp duty has had a significant impact on the home market.

The tax holiday means buyers in England and Northern Ireland can help to save up to lb15,000 when choosing a house, with the biggest breaks on offer to those spending lb500,000 or more.

The stamp duty cut was because of end on 31 March, and this led to a huge surge of buyers looking to get purchases over the line last month.

Data from HMRC shows 190,000 transactions happened in March, double the amount figure recorded a year earlier, by far the highest seen since the start of pandemic.

The tax break was extended in March, meaning we’re prone to see high numbers of sales continue a minimum of for a bit more time.

What’s happened to house prices?

House prices have risen across the UK within the last year, with growth of a lot more than 8% in England, Wales and Scotland.

Prices in Northern Ireland have risen in a slower rate, as shown in the table below.

Greater demand has resulted in higher prices, specifically for buyers upgrading the home ladder to larger and much more expensive homes.

Data from the Land Registry shows how detached houses in the united kingdom have raised in price by the biggest percentage over the last 12 months.

Flats have seen the tiniest growth in price, perhaps reflecting buyers seeking to move to bigger properties and concerns within the cladding crisis.

What’s happening to mortgages rates?

The coronavirus outbreak last spring led to the number of mortgage deals on the market halving, with individuals with the smallest deposits worst affected.

The good news is that situations are now improving. Nowadays there are 3,659 fixed-rate mortgages available, 25% down on the numbers recorded prior to the pandemic but the highest number we’ve seen since last spring.

Rates are attractive, too, especially if you’ve got a big deposit. The chart below shows the cheapest initial rates available to homebuyers at five popular loan-to-value levels.

Is now a good time to purchase a house?

The stamp duty cut and low home loan rates may appear like tempting good reasons to buy a home at this time, but there are several downsides of purchasing in a hot market, especially one so heavily affected by external factors such as the pandemic and temporary tax changes.

First of, let’s consider the stamp duty cut. The lb500,000 tax-free threshold is going to be lowered to lb250,000 in England and Northern Ireland, and lb180,000 in Wales from 1 July.

This implies that even when you’re actively looking now, you will face a race against time for you to get your purchase within the line before the end from the tax break.

The other issue is that artificially high house prices could spell trouble for the short term. Simply put, if you buy now, you will probably find that the rentals are worth less than you paid when the current rush dies down.

With these 4 elements in your mind, it may be worth biding your time instead of rushing right into a purchase and – should you choose choose to move – ensure you’re doing this using the longer-term picture in mind.

Is now the time to sell your house?

As we mentioned earlier, it’s greatly a seller’s market at the moment, but whether you should go ahead and take leap depends upon your own personal circumstances.

If your home has grown significantly in value, you may be tempted to money in now and use your equity to progress to another home.

Whether mtss is a wise decision depends partly around the property you’re looking to purchase – if you’re selling towards the top of the market, you’ll apt to be buying in that same market – so that uplift in worth of your present home might not have as significant an effect while you hope.

Sought-after properties in great locations will always attract interest from buyers, and moving house is a big decision.

With this in mind, take your time, do your research and don’t be tempted to sell simply because of the tax cut or high house prices.

What buyers are looking for in 2021

The Covid-19 outbreak has resulted in significant changes to how we live our lives – with working from home likely to remain more commonplace in the long-term.

With this in your mind, house buyers are searching for different things from a property compared to what they were prior to the pandemic.

A survey conducted by Savills last year found that younger buyers are increasingly searching for homes with gardens, separate places that they are able to work at home and high-speed internet.

If you're considering selling this season, possess a think about the way your property fits with what buyers are searching for, and consider improvements you may earn to make your house increase in value and attract greater interest.