What will the new budget mean to the Berkshire property market?
Rishi Sunik gave the property market another can of Red Bull on 3rd March. I have had positive feedback from ever buyer, landlord or seller that I have spoken with since.
Stamp duty is extended until the end of June up to 500k and then a further step down extension to tax free purchasing up to 250k until September.
There is also the introduction of a government underwritten mortgage with a 95% loan to value option. This is a push to help ‘generation rent’ turn into ‘generation buy’.
THE BIG QUESTION! Will property prices in Berkshire go up now? Or down?
Estate agents tell you what you want to hear and often respond to this question with a simple yes. But let’s be honest we could be in a world wide economic melt down and the average estate agent would be saying the property market is great. However here is my educated forecast for anyone interested in property pricing…
These are my three reasons why I think prices will increase:
1) People have pushed forward their moving plans due to the stamp duty holiday and therefore we are seeing a shortage of properties on the market in Berkshire. With significantly less properties for people to choose from it impacts buyers motivation to offer quicker and higher at the fear of losing out.
2) It is cheaper today to buy the same house and the same price compared to just 4 or 5 months ago. Why? Because the banks are desperate to increase their mortgage market share and as a result they have dropped interest rates. This is brilliant for the Berkshire housing market because we are an area dominated by higher loan to value mortgages. Cheaper means better and cheaper mean more buyers.
3) Life have changed and the way we live will never be the same again… Covid-19 and national lockdowns mean millions of people will never return to the office working environment. This has resulted in us seeing a huge demand for home office space or garden space and properties with garages. Living trends for people and general lifestyle is obviously going to be so different now and in the future. Changes in lifestyle mean normally means people move house, and this will result in added fuel to buyer demands.
Is there a property market ‘boom’ incoming….? Personally I think there might be for the rest of the year. Watch this space! If you have any questions feel free to reach out on my email below.
All the best
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