The coronavirus pandemic has changed everything from the way we work, to the way we shop and even the way we buy houses. As a result of Covid-19, the property market has seen some dramatic changes – but this isn’t necessarily a bad thing.
But how exactly has the property market changed?
House prices have boomed
Throughout the pandemic, although lending decreased on the whole, house prices boomed by 7.1%. As a result of spending more time at home and less time commuting, many people were found to move out of cities and into more rural areas. Rather than swanky city centre apartments, buyers fought over a place by the sea, or houses with space, a garage and a garden.
With an increased demand for housing, homeowners could be sitting on a significant amount of wealth without realising. As a result of this, it could be a good time to look into taking an equity release. This will mean that you may be able to release money from the value of your property to be given as a cash loan.
Sales have risen
Following the introduction of the stamp duty holiday and first-time buyer schemes, it’s no surprise that more and more people are looking to purchase a home. The stamp duty holiday meant that buyers could benefit from the maximum tax break until June 2021. This combined with the 95% mortgage scheme launched by the government has meant that buying a house is more accessible to many, leading to a boom in sales.
Average asking prices have risen
Not only have house prices risen, but people are paying more for the property. According to research, the average house prices are up 8.9% in April.
However, this curve looks set to flatten with house prices looking to slow for the first time since July 2020. Nevertheless, we’re still experiencing a housing boom.
People want more space
Although homes with gardens were popular before, nowadays there is a “race for space” as buyers look for bigger homes and gardens. With more people spending more time at home over the course of a year, its apparent that if people are going to be at home for a while, they value having the space to make staying at home more enjoyable.
In conclusion
In the year that everything changed, house prices were no different. With increased demand and more attractive schemes such as the stamp duty holiday and 5% deposits, many first-time buyers and homeowners alike rushed to make the most of it. As house prices look set to level out, it will be interesting to see how the landscape will continue to change.
