With estate agents in England being allowed to remain open as we venture forth into “Lockdown 2”, the allure for many to move now could be more tempting than ever, especially as the deadline for the Stamp Duty holiday edges closer. But what does this actually mean for those wanting to move before April 2021, and is it worth moving now or waiting until Spring?
When Chancellor Rishi Sunak announced the Stamp Duty holiday in early July, many movers were delighted as it meant they could save up to £15,000 if they were buying a home of more than £500,000 and if the sale is completed before April 2021. Great news!
Or is it?
The Land Registry’s UK Housing Price Index reported that the price of UK property has risen 0.7% month-on-month and 2.5% year-on-year meaning the average value of sold property in the UK was £239,196 in August 2020. When considering asking price data, Rightmove report that in October, asking prices increased 1.1% month-on-month and 5.5% year-on-year, with newly listed properties being at a record high and selling quicker than ever before. Specifically to the Yorkshire and Humber region, house prices have increased 7.4% over the last year. Taking this information into consideration, one has to consider if one will be better off buying before the Stamp Duty holiday ends. Are you really saving money if you move now? Some experts, including the Center for Economics and Business, predict that house prices could fall by a whooping 14% in 2021 so definitely do your maths before deciding when the best time to move is for you.
Another key thing to think about if you are considering buying before the Stamp Duty holiday ends is that the sale must be completed before April 2021. This may seem like a long way off but when it takes, on average, 50 days to sell a house and 15 weeks for the transaction to be complete, that already takes us through to the middle of April; after the deadline has past. If you have property to sell, there is a warning not to overprice your house to maximize the chances of finding a buyer sooner rather than later. There are plenty of buyers out there so make sure it works out well for all parties involved.
Additionally, consider when did the house go on the market? If the property was already for sale pre-lockdown, there is a chance that it would not have seen the hiked prices that some properties saw over the summer months, therefore you may benefit from the Stamp Duty holiday and a lower asking price.
So are you a stayer (for now) or a goer? Either way, one thing is for sure; as lockdown continues, consumer habits are continually changing. More people are working from home and are looking for affordable properties in rural locations (as long as the broadband is up to speed) with good transport links. If this is your dream, Yorkshire could be an ideal relocation destination for you!
Kay France is the founder and owner of Move to Yorkshire, a relocation service working with families who want help finding their perfect home in Yorkshire and with businesses who are bringing talent to our glorious county.