OCTOBER 2020 MARKET COMMENT:
OCTOBER 2020 MARKET COMMENT:
To say estate agents have been busy since re opening after lockdown would be an understatement. The back log of people determined to move was released which created a frenzy in the market place with four months of lockdown pent up demand turning into a few weeks or so of amazing activity, which in turn, was in effect playing catch up and now, starting to return to activity levels we would typically expect in late October.
The unprecedented uplift in buyer demand over the past couple of months certainly bucks any notion of pandemic paralysis. One property portal tells us that buyer enquiries are up 14% annually and sales agreed in the UK are just 5% below this time last year - which is pretty remarkable under the circumstances.
Considering the market was stagnant for most of 2019, the last quarter’s 8.5% increase in buyer demand is extraordinary and has contributed to an annual 5% uplift in house prices. This will be a relief for any homeowners who were wondering if last year’s house price plateau was here to stay.
Interestingly, Covid -19, along with some government intervention has certainly overcome that, at least for the time being, because when activity rises, house prices follow. Nevertheless, research from PwC suggests that up to 20% of people say they are now less likely to purchase a home over the next couple of years compared to pre-Covid-19 figures, due to the ongoing pandemic and economic uncertainty. This is partially balanced by the 10% of people who say they are now MORE likely to move than before, possibly due to the Land Transaction Tax holiday worth up to circa. £15,000. The average saving is about £4,500 but only until March next year when the concession is due to expire. So if you’re thinking of moving next year – do bring it forward!
Interestingly first time buyer sales agreed are up 36%.
Additionally, the good news for first time buyers is the government plan to help young people become “Generation Buy” by helping them onto the property ladder with just a 5% deposit.
It’s essential not only to power the property market from below, but it’s also good for society and local communities to make home ownership available to all. Having said that, government intervention in the economics of supply and demand does not always work out for the best.
Although buyers are certainly buying, a potential difficulty is the length of time it is taking for local authority official searches to come back maybe due to Covid-19 related staffing issues. Some areas in the UK are believed to be taking up to two months, which could really frustrate buyers hoping to take advantage of the stamp duty holiday.
So a key word of advice here is that if you are a buyer make sure you send for the search immediately.
In Llangefni and Holyhead our agencies with The Principality Building Society agency remains open in week days, on slightly reduced opening hours, if you are travelling to visit, please check the current opening times.
TPPUK ONLINE AUCTION IS A HIT WITH SELLERS & BUYERS:
This works well in our auction department where sellers order the searches at the outset of marketing, even before a buyer is found, allowing our auction team to commence marketing and sell/exchanges contracts on property in as little as six weeks. Our auction team has had to adapt to the current climate and although we previously offered both in room and online auctions we have now had to move all auction sales to online live bidding. A move that had demonstrated success, maintaining a 100% success record.
If you need a quick sale, please feel free to speak to any of our agents about how to go about the auction method of selling.
LETTINGS CONTINUES TO GROW:
On the investment side, landlords will be pleased to hear that, according to ARLA, the number of new prospective tenants registering, is the highest on record with over 100 applicants per branch, breaking the last record set in 1997!
Average tenancy duration is also at an all - time high, with tenants staying in their properties for an average 21 months.
VIRTUAL SERVICE HAS BEEN POPULAR:
In sales & lettings we continue to work in a safe manner, trying to follow the guidelines as best we can to help you achieve your goals and move into your new home. We will continue to offer our virtual service too. So, if you’re unsure about having people visit your home, ask us to help remotely - again it’s a service that has worked well throughout lockdown and remains option for you.
Our facebook page has also proven popular through out the period with regular updates, please visit and “like” to be updated with the latest property news.
If you’d like any advice as to how the current climate could affect you moving or investment plans, please don’t hesitate to contact us on for a free overview, with a smile and no obligation.
Holyhead 01407 760500
Llangefni 01248 751000
Bangor 01248 355333
Caernarfon 01286 677775
Auctions 01248 753939
Property Management 01248 724040
Probate & Matrimonial Valuations 01248 753939
Or of course, find out more on www.tppuk.com
Regards
Melfyn N Williams
BSc (Hons) MRICS PPNAEA FNAEA CPEA
©Copyright 2020 Williams & Goodwin The Property People Ltd.
