The main problem surveyors and conveyancers are facing now is the sheer volume of house purchases they are having to process. This vibrant housing market is critical in the UK’s economic recovery. There is evidence that about a third of properties sold for more than the original asking price. There is also an increase in the number of people searching for a house, but the number of available properties fell so there is an average of 16 buyers for every available property on the UK market. So, with a diminishing housing stock the prices will continue to rise. The problem of housing stock is being addressed in a recent government Planning Bill but this will take time to provide affordable housing, so many people will be frustrated and face a wait.
The Bank of England Money & Credit figures showed that borrowing fell in April compared to a record of £11.5 billion in March which could be due to the proposed change in stamp duty. The borrowing in April was also lower than the £5.7 billion average monthly amount borrowed in the six months leading up to February 2021. However, both gross lending and repayments remain above levels seen since the beginning of 2020. The Bank reports that the recent variability is likely to reflect the reduction in the stamp duty tax, which was initially due to end in March but was then extended to the end of June.
As the country post Covid-19 returns to some form of normality, the housing market will continue to heat up and it is predicted that the summer will be busy.