Buyer demand hit twice normal levels in March
No signs of a market slowing yet, as recently released data shows homebuyers’ demand for home transfer quotes was 101% higher at the end of March than the average for the same period. over the past four years.
The figures, released by Reallymoving, highlight the acceleration of transfer quotation volumes around March 3, which just happened to be Budget Day, and the announcement of an extension of the existing stamp duty holiday and d ‘a reduction in the tax economy in the fall, as well as news of a mortgage guarantee system for loans at 95%.
By the 19th, listing volumes had reached 51% more than average and continued to accelerate to reach 101% more by the end of the month.
Although they benefit the least from the extension of the stamp duty holiday, the volume of first-time buyers seeking property transfer quotes also accelerated sharply in the past month. Demand accelerated throughout March, reaching 111% more on March 30 than the average on the same date over the previous four years.
A survey conducted by Canada Life in November 2020 found that a third of adult children had returned to live with their parents during the pandemic, giving many of them a unique opportunity to save for a deposit. They will also be encouraged by several high street lenders who are signing up to the government’s new mortgage guarantee scheme, which means more high-value mortgage choices will soon be available – and fears of another spike in prices. caused by the extension of the stamp duty holidays. .
Households have accumulated £ 125 billion in excess savings throughout the pandemic, according to the Bank of England Monetary Policy Report released in February 2021, which works out to an average of £ 5,000 per household. While many households have been hit hard, many have seen their financial situation improve dramatically as incomes have remained stable with few spending options.
At the same time, spending more time at home, including at work, has prompted families to reconsider their home and whether it meets their current needs – and whether a move may now be a viable option, because an element of working from home becomes the norm.
Rob Houghton, CEO of reallymoving, comments on the results: “It’s a strong seller’s market and demand continues to grow as we head into the spring, encouraged by the launch of 95% government guaranteed loans and the extension of the stamp duty holiday. Many homebuyers have money in the bank, money is cheap to borrow, and with the end of the foreclosure in sight, people are feeling optimistic about a future where they might be less tied to an office. from 9 to 5, which gives them greater freedom to live where they choose.
“The housing market is generally a reliable indicator of consumer confidence and if this level of demand is anything to go by, the Chancellor could take advantage of the summer consumer spending spree he’s hoping for.”