After an interesting year since the pandemic started, clear trends are now emerging that look set to dominate the property market for some time…

Pent-up demand speeds up sales

With the property market open once more and buyers galvanised into action by pent-up demand and incentives such as the temporary Stamp Duty holiday, many property transactions are reportedly flying through. According to Zoopla, a three bedroom house sold in an average 24 days in the 90 days to mid-August – 12 days quicker than last year*.

The world reflects

Meanwhile, one-bedroom flats are now taking the longest to sell at 34 days, perhaps reflecting a nationwide prioritisation of what we want and need in our homes. For example, post-lockdown demand for outside space has shot up, with properties with south-facing gardens enjoying a 7% higher price than average**. These trends are borne out globally; a survey of buyers from 44 countries revealed that 40% and 37% are on the lookout for waterfront and rural homes, respectively3.

Homeowners seek country idyll

The mass shift to remote working means that many buyers are no longer tied to London, big cities, or expensive commuter areas.

As a result, enquiries about village properties leapt by 126% in June and July compared with the same period last year***. With the nation cooped up in their homes for months during lockdown, it’s little wonder that so many have their eye on a rural idyll.

Longer mortgage terms for first-time buyers

Even before the pandemic, some first-time buyers were struggling to get their foot on the ladder. Resigning themselves to longer mortgage terms in exchange for affordability, 45% of first timers accepted a term of 30 years or more in 2018–19.

Advice is key

The property market is in a state of rapid change as the country emerges from lockdown. Over the coming months, local lockdowns are likely to continue to be enforced, which will present other challenges for regional property markets. It’s vital to take professional advice to give your property plans the best chance of success.

Clifford Osborne are Independent Financial Advisors (IFA) based in Eastbourne, East Sussex, offering mortgage adviceearly retirement advicepension advice and more. We’d be delighted to help you.

We often visit clients across Sussex and Kent, including Eastbourne, Uckfield, Lewes, Brighton, Tunbridge Wells, Ashford, Hastings, Hailsham, Bexhill, Newhaven, Seaford, Crowborough and further afield. Please contact us to arrange a free initial mortgage review.

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As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.

It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.

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The information contained within the blog is for information purposes only and does not constitute financial advice.

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* Zoopla, 2020
** Rightmove, 2020
*** Knight Frank, 2020