Author: Antony Antoniou

The portal says 21 per cent of the available properties it lists are now chain-free, a jump from around 15 per cent this time last year.

This new trend is most acute in London, where 12 per cent of listed properties this time last year were chain free, whereas it’s 21 per cent today.

Rightmove’s director of property data Tim Bannister says: “We know that one of the reasons sellers are often hesitant to come to market is because they can’t find somewhere that they want to buy, but with record buyer demand and the stamp duty holiday being an added incentive for prospective buyers there seems to be a group of people who are choosing to sell up now and rent temporarily.

“Selling chain-free is perhaps something some owners hadn’t considered as a possibility before now, but with the competitive market and stock shortage we currently have they’re trying to put themselves in a more attractive position when their dream home comes along. In the capital there are also some landlords who are selling up now, which could open up an opportunity for some first-time buyers looking for their first home.”

The portal says that the strongest sellers’ market in a decade means that currently almost two out of three properties on an agents’ books are sold subject to contract. There are signs however that new listings have been starting to improve over the past few weeks.

Before the start of the holiday last summer, asking prices averaged £277,104 but buyers actually paid £248,102 – a 10.5 per cent difference.

But the rush to take advantage of the stamp duty exemption has seen buyers paying more and the gap reducing, to just 7.2 per cent.

And the market as a whole has ratcheted upwards: sold prices have averaged £261,325 since the introduction of the holiday, up 5.3 per cent when compared to the previous average of £248,102.

GetAgent, the comparison website which commissioned the research behind the figures, says the gap would have closed further had sellers not hiked asking prices by well over one per cent in recent months.

The site’s chief executive, Colby Short, says: “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.

“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.”

The North West was the English region which saw the highest annual growth in average house prices, up a remarkable 12.0 per cent. The West Midlands was the lowest on 4.7 per cent.

Across the UK, the average property value in January was £249,000 which was down from a record high of £250,000 in December. However, the average house price in January was still £17,000 higher than in January 2020.

Nitesh Patel, strategic economist at Yorkshire Building Society, says: “The dash for space continues at pace as buyers snap up larger homes, adding upward pressure on prices.

“In the past year the price of detached homes has grown by 8.6 per cent compared to 2.6 per cent for flats – three times the rate.

“Since March 2020, the popularity of detached homes has grown, now accounting for 28 per cent of all home sales, up from 22 per cent. Flats now account for a smaller share at 12 per cent, down from 17 per cent over the period.

“We expect demand to stay at an elevated level relative to supply, and as a result adding further pressure on prices.”

“This was partly due to further lockdown restrictions and difficulties of overcoming the huge conveyancing backlog.”

One in 10 say they are going to employ two or more new members of staff.

Some 28 per cent of respondents to a new survey cite the stamp duty holiday extension as a key influence on their hiring decisions over the next year.

However, the vast majority believe that the government’s new 95 per cent guaranteed mortgage scheme will not have a significant effect on the market – and is thus not an influence on their long term staffing plans.

“Many agents are still finding their feet after the initial financial instability of lockdown and the average agent has around £100,000 in fees stuck in their pipeline due to the current market backlog. As a result, they may be hesitant to hire as they lack the immediate financial resources to do so” claims Silas J Lees, chief executive of WiggyWam, the PropTech platform behind the survey.

“It is an area that needs property consideration though as lack of effective new hires could lead to rising stress levels as they feel the burden of doing more work than humanly possible” he concludes.

The Daily Mail has run a story saying that a home security camera in a room in the property at Ramsgate, Kent, caught the two agents – from Wards – criticising the family’s living arrangements and questioning how many people slept in the same room.

One of the agents is reported to have said about the property: “You might as well knock it down.”

The vendor tells the newspaper: “I was disgusted, I just felt so low and worthless. I just didn’t expect anything like that … One of them said our house was disgusting. They felt the need to have a conversation about my family slagging us off in our home when they thought we weren’t looking. We trusted them with our home and they disrespected us.”

The newspaper quotes David Lench, group managing director of Wards’ agency owner Arun Estates, saying: “Since learning about this most regrettable incident at the weekend, Wards have been in close contact with the client and her sister who instructed Wards to market the property.

“We have apologised unreservedly for the inappropriate and unprofessional discussion that took place between two staff members at the property on Saturday.

“Both staff members are extremely sorry for the upset they have caused and are highly embarrassed by their conduct.

“Wards rigorously trains its staff to treat customers fairly and with respect at all times. We are disappointed that the behaviour of these staff members falls far below the standards for which Wards are known.”

He continues: “This is most regrettable as we have never previously experienced an incident of this kind and both staff members have had an unblemished record prior to this happening.

“Nevertheless, we completely agree with the client that this conversation should never have happened and fully appreciate the distress it has caused.

“We are taking the matter very seriously and will continue to work closely with the family to do everything possible to make amends. We will also be following our internal procedures with the staff involved and taking appropriate action.”

The Mail says the vendor has now dis-instructed Wards.

Rightmove says that currently the average time for a seller to find a buyer is 65 days nationally, and it takes a further 126 days to go through the legal process to completion.

“Based on this, sellers should be looking to come to market by Tuesday March 23 if they want to make sure their buyers can make use of the tapering end to the stamp duty holiday by the end of September” says the portal.

Wednesday of this week, when the Budget was held, was Rightmove’s busiest day ever with visits surpassing nine million for the first time.

The total was six per cent higher than on summer financial statement day on July 8 last year, when Chancellor Rishi Sunak declared the start of the stamp duty holiday.

This week it was the combination of the stamp duty holiday extension and the introduction of the 95 per cent mortgage scheme which appears to have propelled new buyers to Rightmove on Wednesday.

The number of enquiries the Budget triggered on to Rightmove and then on to estate agents was 82 per cent higher than on the same day in 2020.

Rightmove’s data analysts have also found that in 12 areas of the north, at least 99 per cent of properties are up for sale for £250,000 or less, compared to just five  of properties in London available for £250,000 or less.

A record was also hit on Wednesday in Rightmove’s commercial section, with over 145,000 visits from people looking for a new commercial space for their business.

Rightmove’s Director of Property Data Tim Bannister says: “It’s clear from our record-breaking traffic numbers that the Spring Budget has introduced buyers into the market who were not perhaps able to consider moving until now or who were waiting to hear what was going to happen to stamp duty.

“The stamp duty holiday extension, coupled with the introduction of five per cent deposits, has given many people the certainty they have been looking for to press ahead with their home-moving plans. We expect this to help spring market activity and could encourage more sellers to come to market especially in the areas where property prices are lower.

“Many people who may have been delaying a move for a whole multitude of reasons now have the impetus and encouragement to take their next life step – whether it’s getting a foot on the property ladder as a first-time buyer or trading up for more space and a bigger garden.”

Agents almost without exception have backed the two-phased extension to the stamp duty holiday and also the mortgage guarantee scheme under which buyers of properties up to £600,000 can purchase with as small as a five per cent deposit.

The only hesitation – reflected in some comments below – is the uncertainty as to whether the extended SDLT holiday merely moves the hated ‘cliff edge’ further into the distance, rather than ending the worry for good.

In case you missed them, details of the Budget are below, but first a selection of enthusiastic reactions from agents and suppliers.

Kevin Shaw, group managing director of residential sales at Leaders Romans Group: “In the past year [the holiday] has been a crucial boost for the UK economy, and the ongoing momentum will certainly help to increase public confidence in the post-Covid recovery. At the moment, the property market is set to be stronger than initial forecasts have suggested and we expect Q2 to perform well. The Stamp Duty Holiday extension will certainly help with this.”

Patrick McCutcheon, head of residential at Yorkshire’s Dacre, Son & Hartley: “First time buyers are the engine room that ensures the overall liquidity of the housing market and we very much welcome this move to provide mortgages to homebuyers who put forward a five per cent deposit. The 31st of March stamp duty deadline had the potential to deliver a cliff edge to transactions. The conveyancing profession have been working incredibly hard to ensure that home movers can achieve the saving, but the extension of the relief now takes some of that pressure off the system itself, but also the emotional pressure home buyers are currently experiencing within what is already a challenging environment.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman: “The biggest test is does the Budget help maintain or even improve the number of transactions and investment without adding to upwards pressure on prices? And at the same time encourage the building of more new homes, particularly affordable ones? I have to say the Chancellor probably gets ‘B’ or ‘B-minus’ on his report card as the stamp duty extension, including the tapering, is welcome but there will be another mini cliff-edge in the autumn when this latest holiday finally comes to an end.

“In particular, the reduction in the Affordable Homes Programme, which is cutting the number of social rented homes, is of particular disappointment. The other regret is the lack of support for tenants, apart from those supported by the now extended furlough scheme.”

Bryan Mansell, co-founder of PropTech supplier Gazeal: “Although it’s positive to see the government listen to the views of agents and conveyancers on the coalface, as well as the property-buying public, more consideration should have been paid to calls for a more specific tapered end to the tax cut. A three-month extension – and additional help until September – will be more effective than an additional six weeks, which was previously rumoured to be in the Chancellor’s plans. However, it still creates a cliff-edge so even though more buyers will benefit from stamp duty savings than previously thought, there will still be some who miss out.”

Guy Gittins, chief executive of Chestertons, says: “Whether a three-month extension is enough remains to be seen. As we are witnessing the stamp duty holiday’s positive impact on the housing market, we believe there’s a strong case for the stamp duty tax system to be comprehensively reviewed; a thought that is likely to remain a hot topic over the next few months. Any additional assistance for first-time buyers is always welcome. First-time buyers were hit particularly hard by the lack of mortgage availability during the pandemic. As such, the government’s introduction of a 95 per cent loan to value mortgage presents good news for first-time buyers, keen to get on the property ladder. Another audience likely to benefit are existing home owners wanting to trade up or re-mortgage to release equity.”

Rightmove property expert Tim Bannister: “We’ve heard from so many first-time buyers over the past year of their challenges to raise a 15 or 20 per cent deposit, with a number saying they had to put their plans on hold, so the availability of five per cent deposits will really help this all-important market sector. It could help some buyers bring their plans forward, especially if they managed to save more than they were expecting to while in the various lockdowns. It’s also a helping hand to people who have been struggling to trade up because of the much bigger deposit needed. Right now there are not enough properties coming to market to satisfy the increased buyer demand that this scheme will likely bring.”

Iain McKenzie, chief executive of The Guild of Property Professionals, says: “The Chancellor gave the property market a double shot in the arm today, with a boost from the stamp duty holiday extension and 95 per cent mortgages. Extending the stamp duty holiday until the end of June, then phasing it out until September should help avoid a sudden downturn in prices caused by the much-feared cliff-edge end. With the zero-rated stamp duty limit extended to £250k until the end of September and the average UK house price being £252k, it means that thousands of people can benefit from this incentive – particularly first and second-time buyers.”

Craig Vile, director of The ValPal Network (a product of Angels Media, publisher of Estate Agent Today): “The stamp duty holiday extension is positive news … There are, however, some concerns. Firstly, if there is no tapered end, thousands of buyers could miss out on tax savings and there could be a drop-off in market activity. Secondly, there are concerns that the stamp duty holiday has artificially inflated property prices. Agents must therefore consider the impact another six months of stamp duty savings could have on average prices for the rest of the year.”

For those who missed Chancellor Rishi Sunak’s Budget yesterday, here are the main measures affecting the property industry.

The stamp duty holiday on properties up to £500,000 will be extended from March 31 to June 30; from July 1, the holiday will apply only on properties up to £250,000 until the end of September. It will not be until October 1 that the pre-Covid stamp duty thresholds and levels will resume.

This means that the maximum saving for buyers from the start of July until the end of September will be just £2,500 – sizeably less than the £15,000 saving possible under the current holiday, which continues until the end of June.

Chancellor Sunak has also confirmed that there will be government-guaranteed 95 per cent mortgage loans available from next month, on the purchase of properties up to the value of £600,000.

Sunak also says there will be a 100 per cent Business Rates Holiday until the end of June; thereafter business rates will be discounted by two thirds up to a maximum of £2m for larger businesses. However, Corporation Tax is to rise sharply from 2023.