Reasons to be positive in a changing housing market

UK house prices grew by 7.6 per cent in the year to November, according to the latest figures from Halifax, as buyers sought more space and benefit from the stamp duty holiday. The yearly increase was the strongest growth since June 2016.

There were some signs of the market cooling off, however, with agreed sales and new instructions falling to their lowest level in five months. But there is cause for optimism. Clare Phillips, Partner at Phillips George reminds us that both remain at historically high levels.

Britain’s housing market has boomed during coronavirus, defying logic during the worst economic downturn in 300 years.

Clare Phillips says it has in part been driven by people wanting more space after spending lockdown at home. Many people have put away savings during the pandemic.

Chancellor Rishi Sunak’s stamp duty holiday has also been a major factor. It has increased the threshold at which stamp duty is paid to £500,000.

Clare said: “The Leicestershire housing market has been much more resilient than many thought at the beginning of the outbreak.” She added that many “remain confident about further price growth next year.”

“House prices are expected to grow by around 4% in the new year despite the challenging economic environment. On top of that you can still take advantage of the stamp duty holiday until the beginning of April this year.”