When you consider the housing market practically closed down for a couple of months, the year-end figures were rather impressive. Of course, 2020 was a year like no other, and there are many factors to consider when evaluating the property market.
The impact of the stamp duty holiday transformed the housing market, bringing the year to a close on a robust note.
At Sovereign House, we are pleased to say we worked with many in the Hackney housing market. Our first-hand experience of what occurred in the market means we know what people are looking for, and this will help us to support buyers and vendors in 2021.
We also stay in touch with the latest market figures. If you are keen to make an informed decision on a housing move this year, we are here to ensure you make an informed decision.
According to HMRC data, there were 19.3% more residential property transactions in November 2020 than in November 2019.
There was a total of 115,190 seasonally adjusted transactions for November 2020, which is a notable increase on the 96,570 transactions of the previous year.
There was also a rise in the volume of homes changing hands, which rose by 8.6% compared to the October 2020 figures.
Anna Clare Harper is the chief executive of asset manager SPI Capital, and she said: “The figures represent a recovery rather than a boom. This is at least partly policy-induced. Transactions are currently being encouraged up by the temporary Stamp Duty Land Tax reduction, as well as the release of pent up demand and supply, and the desire to improve surroundings following lockdown. Transactions have been dominated by second-time buyers – typically trading up in favour of more space – rather than first-time buyers ‘getting a foot on the ladder’.”
While there is some cause for optimism, some market observers are cautious about what happens next.
Jeremy Leaf, is a former RICS residential chairman, and he said: “Transactions are always a better indicator of market health than more volatile house prices. However, despite these numbers showing a still-accelerating trend, they reflect sales which were agreed several months previously. Since then, the market has been moving closer to hibernation as is traditional at this time of year.”
Jeremy continued by saying; “It will be a few months at least before transactions fall in line with the reduced activity that we have been seeing on the ground over the past few weeks. Nevertheless, prospects for 2021 remain relatively positive bearing in mind the determination of the overwhelming majority of buyers and sellers to complete their moves even if inevitably some will miss the stamp duty deadline. Residential transactions data highlight that the fundamental drivers of value in residential property remain strong: our homes have never been so important as in lockdown.”
These are challenging times in the property market, but there is activity and demand for homes. At Sovereign House, we are keen to help you with whatever you need in the Hackney housing market. Why not call us on 020 8985 5800 or visit us at 213 Victoria Park Road, we look forward to assisting you with your property needs.