The buoyant property market in Essex The Essex property market is in a buoyant state in 2021, matching the mood of the nation as we all start to enjoy the relaxation of Covid-19 restrictions.
Property sales over the spring of 2021 have hit record levels, with UK property transactions in March at the highest recorded monthly level since modern records began in 2005, according to data from HM Revenue and Customs (HMRC). And house prices are on the rise too. The same data showed that average UK house prices rose by 8.6% in a year, with 180,690 property sales completed in the UK during March, double the number of sales in March 2020. Venders selling their property through Beresfords had extra cause for celebration as during the month of April the leading Essex estate agent achieved an incredible 100% asking price for clients throughout the month. There were more than 20 prospective buyers per property marketed by Beresfords, plus 46,565 unique visitors to the firm's website and 1,656 new buyers registered. Lettings also saw strong levels of activity with a total of 1,371 active tenants looking to rent in March, as well as 333 new tenants registering throughout the month. Housing market activity is riding the crest of a wave that is fuelled by a number of contributing factors including the migration from urban areas into more rural settings, the extension of the Stamp Duty holiday until 30 June and a new guarantee scheme for low-deposit mortgages announced by the UK government. Available to homebuyers on properties worth up to £600,000 (and not exclusively first-time buyers), those searching for their next new home will require only a 5% deposit to secure a mortgage, with the government underwriting 95% mortgage loans. With many major lenders already
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participating in the scheme, those who have been saving hard to pull together a deposit for their dream home, can look forward to their dream coming true a little bit sooner than they thought. While the Stamp Duty holiday remains in place until 30 June 2021, there will then be a staggered return to previous Stamp Duty rates until the end of September during which time buyers pay Stamp Duty on just the first £250,000 of a purchase price. Landlords and second-home buyers can take advantage of the tax cut too, but do still have to pay the extra 3% of Stamp Duty they were charged before July 2020. And there is no sign of a slowing down in the market with predictions suggesting a year-long boom. Property search site Zoopla has predicted the busiest year for the market since 2007 with around 1.5 million UK house sales expected throughout 2021, up by 45% compared with last year. It also estimates the value of homes sold in 2021 to top £460 billion. With annual transactions rarely exceeding 1.2 million per year over the past decade, 2021 will mark a significant step-change in housing market activity. In the capital, the trend is slower, with properties in inner London taking nearly two weeks longer to go under offer compared with 2020. Further evidence of the migration from the capital as homeowners look to the surrounding counties, and particularly Essex, for the balance of more space at home with the office still within reach.
