Post-Budget Property Market Reaction

March 12th, 2021

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"content_area_title": "What do new measures mean for Birmingham buyers and vendors?",
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"content_area": "The dust has settled on the March 2021 Budget, and there was a lot of information to take in. If you are only getting around to working out what it means for you and your property ambitions, I’m here to help.\r\n\r\nThere were two key announcements relating to the housing market, and there is positive news for many buyers and vendors.\r\n

Stamp duty extension saw immediate action after Budget\r\nWhile it was no surprise to see the stamp duty holiday extended, many people waited for official confirmation before engaging the housing market. This activity is something I experienced personally, with many emails and calls that afternoon and the following days.\r\n\r\nRightmove figures also suggest there was a movement across the national market after the Chancellor confirmed the extension.\r\n\r\nAccording to the property portal, within 30 minutes of the announcement, they experienced:\r\n

    \r\n \t

  • A rise of 85% in the use of their mortgage calculator\r\n \t
  • An increase of 16% in overall traffic to their website\r\n\r\nGiven the sums of money associated with the stamp duty holiday, it is easy to see why it encourages people to move home. The average stamp duty saving across England until the 30th of June 2021 is £5,802.\r\n\r\nWhen it comes to the proportion of people enquiring about properties under £500,000 in England, this represents 84% of the property stock on Rightmove. There is a considerable selection of properties on offer in and around Birmingham for this price.\r\n\r\nAs of mid-March 2021, Rightmove has this to say about the Birmingham property market;\r\n\r\n“Properties in Birmingham had an overall average price of £213,001 over the last year.\r\n\r\nThe majority of sales in Birmingham during the last year were semi-detached properties, selling for an average price of £227,955. Terraced properties sold for an average of £181,593, with flats fetching £158,790. Overall, sold prices in Birmingham over the last year were 4% up on the previous year and 7% up on the 2018 peak of £198,503.”\r\n\r\nThe extension also features a tapering period. There is no stamp duty payable on properties priced up to £250,000 from July until September.\r\n\r\nWith the Birmingham properties’ average price stated as £213,001, this is good news for local buyers.\r\n\r\nRightmove figures suggest that enquiries for properties in this price bracket make up half of all enquiries in England, so the market is likely to remain busy for some time.\r\n\r\nTherefore, if you are keen to move in and around Birmingham, the stamp duty holiday’s impact is still relevant to your needs.\r\n

    Further support for home buyers\r\nAnother measure introduced in the March Budget was a mortgage guarantee for buyers who can only afford a modest budget.\r\n\r\nThe Chancellor said; “Lenders who provide mortgages to homebuyers who can only afford a 5 per cent deposit will benefit from a government guarantee on those mortgages”.\r\n\r\nThis assistance is available for properties with an asking price of £600,000 or less. According to Rightmove, this represents 86% of the properties listed for sale in England.\r\n\r\nRightmove’s property expert Tim Bannister said: “We’ve heard from so many first-time buyers over the past year of their challenges to raise a 15% or 20% deposit, with a number saying they had to put their plans on hold, so the availability of 5% 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.”\r\n\r\nIf the property measures announced in the March 2021 Budget have boosted your hopes of moving home, why not get in touch to discuss your options and opportunities?\r\n\r\nIf you are interested in buying or selling property in South Birmingham, I am here to assist you. Whether you are looking to arrange a free property valuation, or you need a helping hand from start to end of the property sales or buying process, call on an expert with local knowledge. Please contact Dean Coleman on 07581 875 215 or you can email me at dean.coleman@exp.uk.com.”,
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