UK house prices have experienced a record high after a year of national restrictions and working from home. The national lockdown, behavioural shifts and the Stamp Duty holiday have contributed to the increase in property prices. Increasing demand has also played a significant role in the rise of house prices in 2020.
In August, the average price of property rose by 2% from July to £224,123. It’s not just house prices increasing, there was an 91% increased in the number of house sales agreements compared to August 2019.
Prospective buyers have reassessed their housing needs and wants because of working from home and outdoor space. No longer is location the most important factor for buyers, and is now playing second fiddle to more space inside and out. Properties located by the coast, and in a countryside setting have however experienced a spike in demand.
Rishi Sunak’s Stamp Duty holiday has allowed for properties up to £500,000 to become more accessible. The savings made from the holiday has allowed buyers to stretch to an extra bedroom that doubles as an office, with the home office has become a fundamental requirement for thousands of house-hunters. According to Savills analysis of figures from data firm TwentyCi, 62% of buyers asserting that garden space had become more important. 57% of buyers saw the importance of a separate space to work from home in an additional bedroom or designated office.
Although there are concerns of rising unemployment and the unwinding of the furlough scheme, buyers and sellers are shrugging off the concerns and have confidence in the property market.