A new report from Nationwide has confirmed everything Oportfolio have been seeing anecdotally in the last few weeks- namely, that the demand for property is far outweighing current supply. This is making for a highly competitive market with high Property prices, especially in the City of London and the surrounding areas.
Robert Gardner, Nationwide’s Chief Economist, outlined some key points from the report:
Annual Property prices growth increased to 11% in August, from 10.5% in July. Prices rose 2.1% in month-on-month terms, after taking account of seasonal effects. House prices are now around 13% higher than when the pandemic began.
The bounce back in August is surprising because it seemed more likely that the tapering of stamp duty relief in England at the end of June would take some of the heat out of the market. Moreover, the monthly price increase was substantial – at 2.1%, it was the second largest monthly gain in 15 years (after the 2.3% monthly rise recorded in April this year).
The strength may reflect strong demand from those buying a property priced between £125,000 and £250,000 who are looking to take advantage of the stamp duty relief in place until the end of September, though the maximum savings are substantially lower (£2,500 compared to a maximum saving of £15,000 on a property valued at £500,000 before the stamp duty relief in England tapered).
Lack of supply is also likely to be a key factor behind August’s price increase, with estate agents reporting low numbers of properties on their books…”
Although September may see a slight downturn due to the stamp duty relief in England tapering, the market remains demand driven, and favourable to sellers.
If you are looking to move house and want to discuss your mortgage or remortgaging options, we are on hand to help and provide any advice you may need. Why not contact us and discuss the best options for you and your properties on 0207 8877 1169.