There has been considerable activity in the housing market thanks to the stamp duty holiday. Not only has it brought more buyers and vendors to the market, it has changed the way the market performs.
At Sovereign House, we are pleased to say we have helped many buyers and vendors in and around Hackney in recent times. If you are looking to make a move, we can help.
Before the stamp duty holiday was introduced, the average asking price between January 2020 and June 2020 was £277,104. At this time, buyers were paying £248,102 on average. This equates to a 10.5 difference. However, since the 8th of July 2020, the gap has fallen to 7.2%. The stamp duty holiday has led to increased market activity.
Sold prices since then have averaged £261,325 and this is an increase of 5.3% on the previous average sales price of £248,102. There has also been an increase in asking prices, equating to 1.6%.
Before the stamp duty holiday, sold prices in the capital were coming in at 0.5% less than the average asking price. However, since the introduction of the stamp duty holiday, the sales price in London stands at 2.1% more than the asking price.
Other areas where the gap is low between asking prices and sold prices include:
The South East of England, where the gap is 3.2%
The North East of England, where the gap is 5.2%
The East of England, with a gap of 6.2%
Then West Midlands, where the gap is 7.6%
Colby Short, Founder and CEO of GetAgent.co.uk, commented: “It’s inevitable that sellers will enter the market at a higher price than they’re likely to sell for and so sold prices are almost always going to come in at a lower average than asking prices. However, in hot market conditions, this gap tends to close as more buyers fight it out for the same property and at present, we’re seeing a pretty hot market indeed. So much so that sold prices in both London and the North East have actually crept above the average asking price since the introduction of the stamp duty holiday, while all but one other region has seen the gap close.”
Colby concluded by saying; “With more money in their pockets and more competition when trying to secure a home, buyers are paying that little bit more. Of course, this gap would be wider, but savvy sellers are also entering the market at a higher price point in order to make the most of these buoyant market conditions.”
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