Jamie Minors, director of Minors & Brady, looks at why the local property market is continuing to thrive despite an unprecedented and challenging year.
I remember doing my Business & Economics A levels in 2008, with the economic crash and subsequent housing market crash being described by Mr Transfield as the most fascinating time of our lives to learn about finances.
In 2008, the world economy broke down, the stock market crashed and the housing market followed suit. Since then, we have had a phenomenal recovery, with Norfolk’s housing market seemingly in an ever growing bubble since 2010. So, why on earth have house prices soared 5.3pc this year, with predictions looking to be 7pc come December 2020, despite the dire situation we are all in with Covid 19?
Well, let’s start with pain. Pain itself isn’t a pleasant word, however it’s the reality of what has greatly stemmed demand, which has directly pushed prices up. In lockdown, many of us were in pain and wanted change as soon as we got out of lockdown. Whether that’s in our relationships, family living or the property itself, buying demand changed very quickly. Those without gardens wanted them, those in the city wanted to get out, and those rattling around paying a big mortgage in a wasted home wanted to downsize. First-time buyers living with Mum and Dad needed their own space.
Those that couldn’t go on holiday, or couldn’t get married, needed something positive to look forward to, so they went house shopping instead, and as many people thought about the reality of working from home for a longer period of time, they decided they wanted something far better/bigger than they currently have. Demand for an office/study or potential for this increased.
But demand without money/lending or the ability to purchase doesn’t lead to house prices increasing. However with all-time low interest rates and some exceptionally cheap mortgage deals, it made borrowing affordable for many, with some lenders offering five-year fixed deals as low as 1.4pc over base rate.
The Government jumped in to protect the housing bubble and allowed a stamp duty holiday, adding further fuel to an already fired up list of buyers. It’s been by far the busiest housing market I’ve seen in over 10 years, with no signs of stopping. But what happens now?
We still have incredible buying demand, a huge number of people moving to Norfolk and many locally wanting change. Interest rates are still very low and the stamp duty holiday runs until March 31, with many campaigning for an extension due to the back log of sales.
Who knows what will happen, but if you’re wanting to move, now is the time to put your house on the market, find your next home and save up to £15,000 before the end of March 2021.
This column is sponsored by Minors & Brady.
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