Spring has always been known as the best time to sell your home.
And in 2021, with buyer demand at record highs, there’s arguably never been a better time to sell if you’re thinking of doing so.
In this piece, we’ll be revealing why this spring is set to be even busier than normal for the property market here in the South West…
UK property market news: Spring 2021
Rightmove suggests this spring will be the strongest sellers’ market for a decade ¬– meaning incredible opportunities for you if you’re thinking of selling up.
In its February Price Index, the property portal revealed:
• A 33% rise in visits to Rightmove during January, with estate agent buyer enquiries increasing by 12% compared with January 2020
• Visits rose by 45% in February and buyer enquiries were 18% higher than at the same time last year
With the stamp duty ‘holiday’ extended until June 30, meanwhile, the strong start to the spring market looks set to continue.
The spring budget effect
The extension of the stamp duty ‘holiday’ until June 30 was confirmed in the spring Budget on March 3.
But our website here at CJ Hole was already seeing large spikes in traffic from eager buyers as early as January:
• The week commencing January 31 was CJ Hole’s busiest week online since September 2020
• January and February 2021 saw increases in traffic of 12% and 30% respectively year on year
• Wednesday, February 10 was our busiest day in 2021 so far, with a 35% increase in traffic compared with July 8, 2020 – the day the stamp duty ‘holiday’ was announced
Demand vs supply
The gap between demand and supply is at its highest for 10 years, according to Rightmove.
Eager buyers looking to enjoy savings of up to £15,000 on stamp duty before the new deadline of June 30 are being faced with a lack of properties to view – although there are signs this is starting to change. According to Rightmove’s February Price Index, every property currently for sale is generating 34% more buyer enquiries than at the same time last year.
And with sales already agreed on two of every three properties on the market, we have a scenario where buyers are essentially constantly hitting ‘refresh’ on their website browsers in a bid to see new properties first.
However, sales, were up by 12% year on year in the first week of March according to Rightmove, suggesting buyers are now starting to find the properties they want.
Rightmove’s data also revealed:
• An average of seven million visits to the portal every day in February – a 40% increase on February 2020
• A small 5% fall in new properties going on the market during the first week of March – suggesting sellers are now starting to take action and satisfy this strong buyer demand
UK property prices: Spring 2021
Asking prices in the UK rose by 0.5% between January and February, taking the UK average asking price to £318,580 – a 3% increase on the previous year.
Asking prices by market sector
Top of ladder
Property prices in the South West
The average price of the property in the South West now stands at £318,449, according to Rightmove’s February Price Index.
That’s an increase of 3.4% compared with the same time in 2020.
UK rental prices: Spring 2021
Office for National Statistics (ONS) data shows rental prices across the UK grew by 1.3% in the year to January 2021.
Landlords, according to Rightmove’s most recent Rental Price Tracker, though, are enjoying average rents of £972 per month – a 3.7% rise year on year.
Property market predictions for the rest of 2021
Property market predictions for 2021 at the end of last year were probably best described as ‘cautiously optimistic’.
However, the continued vaccine rollout and the 6.6% growth reported at the end of 2020 has boosted that optimism.
Rightmove predicts price growth of 4% this year, with the Office for Budget Responsibility suggesting the same figure.
PriceWaterhouseCoopers (PwC), however, suggests growth of 1% is more likely – as long as the UK can avoid a serious third wave of Covid-19.
Now really is a great time to sell
Buyer demand is high and available properties remain scarce – so, if you are thinking of selling this year, now is a great time to do so.
Start with a free video valuation of your home and if you have any questions about the market and whether now is the time to sell or buy your next home, your local branch of CJ Hole would be happy to chat through your options.