Construction & Property

Published: September 15, 2020 | Updated: September 15, 2020

Residential sales are thriving but the million dollar question is, will it last?, asks Jim Doerr

By Andrew Diprose, editor

We’ve seen a resurgence in the residential property market, writes Jim Doerr, Managing Director, Goadsby (Residential).

Home sales are flying off the shelves at their fastest rate in over ten years and at their highest prices.

So why is this happening at a time when the overall economy and jobs outlook is still on a decidedly rocky path?

Four key factors are at play:

  • Pent up demand

Many buyers purchasing now, were looking to move earlier in the year, but due to Covid -19 and the subsequent lockdown were unable to. While many have had to reconfigure their finances due to lender criteria around furloughed employees this has not dampened their thirst to move.

  • Climbing the wall syndrome

People have spent an unusual amount of time in their homes this year with many carrying out DIY jobs and improvements. While some will be more than happy with their results and feel they now have the perfect home to live in and enjoy, many have realised that lack of storage, outside space or general layout or location could be improved upon. This has brought many more ‘curious’ buyers to register with estate agents and these buyers have acted quickly if they have seen a property that suits their requirements. These buyers have also been the source of the surge in new instructions being placed on to the market.

  • Relocation for better quality of life

As per the above many people have also realised during the lockdown that working long hours and trudging into City centres is not for them. We are blessed with living in what many consider to be the best part of the UK, surrounded by countryside and coast and this falls perfectly into the perception of the ideal place to live. We have great transport links and technology/internet service is good, allowing people to work from home and enjoy a better view from their window than smog, tall grey buildings and then the awful commute home!

  • Stamp duty holiday

With the Chancellor announcing a stamp duty holiday on residential properties up to £500,000 until the end of March 2021 this has encouraged many sellers who may have been thinking of selling their property over the next couple of years to bring their plans forward and benefit from the increased activity this holiday has created as well as the saving of up to £15,000 on their onward purchase.

These four factors, coupled with low interest rates and a shift in people’s priorities, have seen estate agents up and down the country rushed off their feet with enquiries and viewings.

We’re no exception at Goadsby.

Across our 20 branch residential network we have been inundated with new buyers registering and more homes coming to the market than is usual for this time of year.

The million dollar question is, will it last?

While we can’t glance into our crystal ball and answer this, with the stamp duty holiday set to last at least another six months, there is certainly no sign of it waning.

What happens next will be determined by the level of homes coming to the market over the winter months.