The property market continued to recover in June and July, with house prices rising by 0.5% and 0.6% respectively. This is the strongest two-month price growth since the start of the pandemic.
The increase in prices was driven by a number of factors, including the continued progress of the vaccine rollout, the reopening of the economy, and low mortgage rates.
In London, prices rose by 0.4% in June and 0.5% in July. This is the first time that prices have risen in London for four consecutive months.
Up in the north, regions like the Northwest saw the biggest price increases, with prices rising by 0.7% in June and 0.8% in July. This is likely due to pent-up demand from buyers who have been waiting for the market to recover.
Down here in Essex, prices rose by 0.6% in June and 0.7% in July. This is in line with the national trend.
The government has introduced a number of regulations in the first 7 months of 2021 that could impact the property market. These include:
The introduction of a new rental affordability test for landlords, which came into effect in April. This test requires landlords to demonstrate that their tenants can afford to rent their property.
The extension of the stamp duty holiday, which was due to end in June but has been extended to September. This holiday means that buyers pay no stamp duty on properties up to £500,000.
The introduction of a new energy performance certificate (EPC) rating system, which came into effect in April. This system will make it more difficult for landlords to rent out properties with low EPC ratings.
These regulations are likely to have a mixed impact on the property market. The rental affordability test could make it more difficult for landlords to find tenants, while the stamp duty holiday could boost demand for properties. The new EPC rating system could also make it more difficult for landlords to rent out properties, but it could also lead to improvements in the energy efficiency of the housing stock.
Overall, the property market is continuing to recover in 2021. The pace of recovery is likely to vary depending on the region, but the outlook is positive.
Here are some tips for buyers and sellers in the current market:
Buyers: Be prepared to act quickly. The market is starting to move, and homes are selling fast.
Sellers: Price your home competitively. Buyers are looking for good deals, so don't overprice your home.
Both buyers and sellers: Get pre-approved for a mortgage before you start shopping. This will show sellers that you're serious about buying a home.
The property market is always changing, so it's important to stay up-to-date on the latest trends. I'll continue to monitor the market closely and provide updates as more information becomes available.
In the meantime, I wish you all the best in your home buying or selling journey!
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