House prices soared during the Covid pandemic due to policies such as the stamp duty holiday and the new mortgage guarantee, as well as the ‘race for space’ which saw more people looking for bigger properties following the move to working from home.
Detached homes have increased by £68,000 since the start of pandemic, a 22 per cent rise, Nationwide says, with people working from home seeking out bigger properties.
One major outcome of the government’s measures taken during the pandemic was a shortage of properties, which has become a principal reason for asking prices rocketing up.
In March, Rightmove director Tim Bannister said that there are currently twice as many buyers as sellers, adding that “the imbalance between high buyer demand compared to low available property supply is the greatest we have ever seen for the start of a spring market.”
Nationwide revealed last month that annual house price growth rose at the fastest pace in 17 years.
Yet, the impact of soaring inflation, energy price rises and increasing interest rates could yet prove influential and make it more expensive to buy a house. The Bank of England has increased interest rates twice in the last four months, but will this really impact the housing market? Experts are divided.
What should you do if moving is a priority for you this year?
In our opinion, until more sellers take the step to market their home, the supply issue will only continue and may just lead to disappointment. When ‘the right one’ comes to the market you need to be ready to offer and, if this means you need to sell your house to buy, you could find yourself out of the race to
It feels like a risk as you don’t wish to be pressured to find by having a buyer, as the selling side can be much easier than the finding – but without that leap of faith, it may just not happen at all.
We also provide a free ‘Home Finders’ service for all our sellers – it is something we pride ourselves in helping with if the move is local, so you don’t feel alone in the process. Be sure to contact us if you are considering a move but the uncertainty is causing you concern.