COVID-19 has had an unexpectedly positive effect on the housing market, highlighting a 3.4% annual house price growth across the UK. This means that it’s currently at its highest level since March 2018.
As we head firmly into the Autumn season, the market still remains busy after lockdown encouraged homeowners to fulfil lifestyle changes. Thanks to government property taxation incentives, there are also opportunities to make savings on purchases. But remember, sales must be completed by 31st March, so if you’re considering buying a property you should not delay to ensure you benefit from this!
Luckily for you, the team here at Mansons is still working hard and are always on hand to help you on your property journey. Make sure to give our team a call on 0191 209 2222 or by visiting our contact us page!
Property prices in the North East showed a 1.7% increase year-on-year. Ranking number one as the strongest housing market within the region was Northumberland with the annual rate of price growth standing at 5.6% with properties averaging around £160,052. The county was soon followed by Ryedale, Hambleton, Craven, Barnsley, and the wonderful Newcastle upon Tyne.
Activity across the UK has been brisk; Rightmove report August 2020 was the busiest month on record, with a significant rise in the number of sales of large (4+ bedroom detached) and 3–4-bedroom properties. Houses in the North East are selling on average 10-13 days faster than they were last year.
It’s not just first-time buyers who are set to benefit! Both first-time buyers, home movers, and second homeowners/investors will all benefit from no standard property taxation on a property purchase up to £500,000, a saving of up to £15,000. However, it’s good to note the 3% surcharge for additional/second homeowners will still be levied. It is also estimated nearly two million people own buy-to-let property across the UK (Resolution Foundation 2019). At 6.2%, the gross yield on residential property across the North East proves to be very attractive.
The rental market has also grown throughout 2020. The demand in the rental sector increased over the summer. Average rental values across the UK rose by 1.5% in the year to August and yields remain attractive. Increased demand and a shortage of supply in many areas should help underpin rental values over the coming months.
We look forward to seeing what the property market looks like as we enter the new year and what this means for our region. If you want to learn more about how we can help you buy/sell/rent property, don’t hesitate to get in touch.