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Expert predicts no slump in house prices

16th July 2021

Expert predicts no slump in house prices

Jonathan Taylor, Senior Associate in the property team at Higgs LLP, is taking stock after the busiest few months in his six years in the profession.

House prices hit record highs during the pandemic thanks, at least in part, to the Government’s Stamp Duty holiday, which offered buyers savings of up to £15,000 in England.

From June 2020, buyers didn't have to pay any Stamp Duty on the first £500,000 of their purchase price. The threshold has now been reduced to £250,000 – and will return to its pre-pandemic level of £125,000 on October 1.

Despite this, Jonathan said the market remains buoyant and he expects house prices to remain steady or even increase slightly.

“Prices may stabilise but I can’t see them coming down or any sort of crash,” said Jonathan. “July has been quieter because the Stamp Duty holiday compressed transactions so much, but I’d expect things to pick back up in August.

“In my opinion, larger, more expensive properties will continue to be attractive. Many people will continue to work from home and they will want a nice atmosphere and more space to operate in.

“Demand in these properties remains extremely high while supply has reduced, so that could even force prices up a little.”

Jonathan said Covid-19 had had an interesting impact on the market that was predicted by few.

Jonathan said: “It’s been a really busy nine months. Many people have revaluated what their homes mean to them as a result of Covid-19.

“Millions of people have been working from home and spending more time there generally, encouraging many people to look for larger properties. More people have consequently been trying to buy and sell and it has driven prices up.

“August and September were quiet because people were still furloughed and were feeling insecure about their futures, but people really started to feel more confident come November and December.

“The Stamp Duty holiday exacerbated that as the £15,000 saving meant people could afford more and everyone wanted to get their transactions through during the window.

“For us at Higgs LLP, transactions are up 200% on this time last year, and this is reflected in the increased revenue that has been generated by myself and my fellow colleagues when compared to recent years.

The booming market was something few experts and economists foresaw at the start of the pandemic.

Higgs LLP’s specialist advisers are able to help with the process of buying and selling a property from start to finish. Visit www.higgsllp.co.uk for more information.

 

 

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