HM Land Registry published the latest price data on 28th June 2021 which is now available on The Move Market.
We are now getting much more data that is related to transactions that have been agreed since the Coronavirus outbreak - one surprising thing that not many predicted was pent up demand causing a mini-boom in property prices and housing activity rising above normal levels.
This in part can be explained by many people 'needing' to move given they need more space to work from home that they had not previously anticipated, as well as the stamp duty holiday being extended.
The stamp duty holiday was due to end in March but it now looks likely to last at least until June.
We are seeing a split in property valuations - flats have fallen in popularity (and price) due to the limited ability to work from home and the lack of outside space.
Meanwhile, detached properties with room for home offices have surged in price, with many buyers not considering a property that can't offer a good home working area.
How long this change in buying behaviour lasts will partly depend on how swiftly lockdown restrictions are lifted and partly upon business's willingness to let more employees work from home on a regular basis.
Whilst initially we expected a market price correction with prices falling due to economic uncertainty throughout 2021, we have now revised our prediction and expect house prices to begin to ease after the stamp duty holiday ends but remain stable.
Going into 2022 we expect demand for flats and smaller properties to pick up again as people realise commuting isn't all that fun still. How the demand for larger properties a further distance from the city centers changes is harder to say, but inevitably some people will be called back to the office 5 days a week again and realise that a 2 hour daily commute isn't for them.
The general fall in prices that we predicted hasn't happened yet - however, we still expect prices to subdue throughout the end of 2021 and for prices to ease off where demand has surged this year.