The normal assumption as the world slowly starts to move forward from the global pandemic that crippled the world’s economy is that the property market too, would be struggling. The reality is the complete opposite – at least in the UK. In order to reverse the natural shrinkage of the property market the stamp duty has taken a holiday. What this means is that property buyers do not need to pay stamp duty.

This tax holiday, coupled with low interest rates, have led to a massive price growth in the last few months. The growth, in fact, is the fastest in over 17 years. This could be an excellent time to move to the UK or invest in UK property, but you will need to keep in mind the following facts.

The UK Nationwide Price Index

The UK nationwide house price index has increased by a shocking 13.4% in June alone, as buyers throughout the UK rush to secure a new property investment before the end of the stamp duty holiday.

In previous months the increase was nowhere near as stark. In the previous month, the increase was only 0.7%.

Today, the average property value in the UK is £242,432, with prices staggeringly higher in the South East and cities like London.

The price of homes in Scotland rose in the year to March by nearly 11%, according to official figures. Data from the Office for National Statistics shows the average house was being sold for nearly £167,000.

Properties in South Lanarkshire had an overall average price of £167,251 over the last year.

Properties in North Lanarkshire had an overall average price of £143,159 over the last year.

Scarcity of Available Properties Increases Value

Despite the interest, there is a lack of properties available on the market, further increasing the value of properties sold. Many consider the property market to be the wild west at the moment, with all types of properties from “the good, the bad, and the ugly” being purchased at breakneck speed.

Property owners looking to sell their property are encouraged to get in touch with Lanarkshire Property Valuations for a free valuation and to also ease the stress and mess of the current property market. Though flying off the shelves, many UK sellers are finding that the process has become increasingly complicated as potential buyers bid higher than they can afford. The right estate agent can increase the value and decrease the stress of selling your home.

Grenfell’s Legacy in the Property Market

Grenfell’s legacy has meant that many flat owners are legally unable to sell their property onwards. If their flat is in a property with the old cladding and has not yet had that cladding removed and approved of by the government, then flat owners cannot sell their property onwards. This has left many stuck in properties that they either do not want or are struggling to afford. Worse yet, rents on shared properties have increased astronomically for many flat owners, far outpacing previous rent increases.

Possibility of a Crash

There are many factors that make the current market a bubble. The tax holiday and several other government-sponsored incentives will end and with it the likelihood of the housing bubble. In previous events, housing crashes have dropped property values between 25-30%. What this means for the market at the moment is that it is the perfect time to sell. For buyers it can be a great market as well, but only if the savings on the stamp duty and over the years with low interest rates warrants the high housing prices.