Buyers have been quick to make offers since early March once the Chancellor confirmed that the stamp duty holiday would be extended until the end of June; keen to progress sales to avoid missing out on the tax saving.
However, a lack of supply is also driving the buying frenzy we are currently experiencing, with fear of missing out motivating buyers to move quickly when they see a property they like. Demand is outstripping supply, particularly for houses with gardens.
Across Andrews' network of 50 offices in the south of England, new instructions actually fell by more than a quarter (26%) in April compared to March. This follows instructions almost doubling in March vs February, up 97%.
Viewings were also down by almost a third (32%) in April vs March, possibly as a result of the lack of new property stock coming onto the market.
David Westgate, Group Chief Executive, Andrews Property Group, commented:
“Unlike the British weather, the market is super hot right now. Since Rishi announced on 3rd March that the stamp duty holiday would be extended, we have seen quality properties going under offer within days of being listed.
“We can’t take on new instructions fast enough to meet the demand at the moment, and the lack of new stock, particularly houses with outside space, is frustrating highly motivated buyers. For any homeowners serious about selling, this is the perfect time to be marketing your property, but these favourable conditions won’t last forever, so this isn’t the time for a wait-and-see approach.
“We may see market activity dip once the stamp duty tax break starts to taper off from the start of July, and again at the end of September, when the tax break ends. The Chancellor is unlikely to extend the stamp duty holiday again, so sellers have a three month window of opportunity to market their properties before conditions could become more unpredictable.”
