The extension of the Stamp Duty Land Tax (SDLT) holiday and the rising buyer demands has resulted in a property boom for the North West, North East and Yorkshire.
Over two-thirds of properties for sale in these areas are listed for less than £250,000. Before the pandemic, first-time buyers were exempt from paying SDLT anyway if the house was valued at less than £250,000.
The SDLT holiday extension means the regions have seen increases in buyer demand. The average buyer demand in the UK is 13% higher than the year before, whereas seller demand has fallen by 13%.
However, according to data from Zoopla, property prices are increasing as a result of buyer demand. Manchester and Liverpool have reported a 6% boost in their housing markets, with Leeds and Sheffield prices increasing by 5%.
Similarly, house prices are growing across the UK. The Midlands, north of England, Wales and Scotland are experiencing a ten-year high due to affordability levels in each area.
Gráinne Gilmore, Head of Research at Zoopla, commented: “The prospects for the housing market over the next year have improved on the back of the Budget. The continued search for space, the stamp duty extension and mortgage guarantees will support activity levels and headline house price growth up to the end of June.
“Yet the pathway out of the lockdown, and the route to a full re-opening of the economy and unwinding of support measures, is unlikely to be simple or smooth. We still expect house price growth to moderate later in the year, but overall transactions are set to benefit from an additional boost following the stamp duty extension and tapering.”
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