Simmonds Mortgages

Mortgage Brokers covering Berkshire and beyond

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2021 and The Property Market

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The property purchase tax has been suspended on the first £500,000 of all sales in England and Northern Ireland since July. The tax break for will now continue until the end of June. After that the nil rate band will be set at £250,000 - double its standard level - until the end of September.

The rapid pace of market recovery in the second half of 2020 has shocked even the experts, with a Savills' autumnal spotlight on the market referring to a 'stronger than anticipated rebound.' Furthermore, HMRC data revealed a massive 19.3% year-on-year increase in transactions in November last year, while mortgage approvals rose to a 13-year-high in October.

What lies ahead?

Although the media was awash with dire predictions of a house price crash early in the pandemic, nothing could be further from the truth. In fact, demand spiked when the property market reopened in May 2020, as buyers across the UK reassessed their current homes, locations and requirements. This, combined with the incentive of thousands saved on Stamp Duty, were contributing factors of the increase in the average UK house price by 6% last year.

While the first quarter of the year is set to be hugely busy, with well over 600,000 sales in the pipeline (most of which will be aiming to complete by 31st March), ongoing economic uncertainty and the potential job losses that could follow the end of the furlough scheme in April, are likely to render this momentum unsustainable in the long run. This pace is not believed to be sustainable throughout 2021, with some lenders predicting a flatter market, although modest growth is still predicted by some.

A 'less straightforward' year

The outlook for the 2021 residential property market is extremely uncertain. Rightmove have recorded their busiest ever start to a new year, with visits to their website up 30% compared to the same time last year. Savills cautions that the outlook for 2021 will be dictated by the Stamp Duty holiday, the ecomonic situation, and the rollout of the vaccine programme, with expectations that net price growth will be at or close to zero. Knight Frank is now predicting that UK prices will be flat over the course of the year, having previously predicted an increase of 1%.

Here whatever happens

As Knight Frank states, 'short-term forecastig during an event as unprecedented as gloval pandemic is not straightforward exercise.' But whatever happens this year, we'll be on hand with expert guidance and advice, covering the latest property news and ensuring that you're always up to date with what's going on in the market.

 

Your home may be repossessed if you do not keep up repayments on your mortgage


Let us help!

We can also help your home purchase get underway by helping you to find the most suitable mortgage for your needs and circumstances and give you our expert advice on how to protect your property, income and family.

If you would like more information or help with your mortgage and protection concerns please call us on 01344 225 149 or 07979 690 056. Alternatively please send us an email at info@simmondsmortgage.co.uk

Your home may be repossessed if you do not keep up repayments on your mortgage

 

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Simmonds Mortgage Services is an appointed representative of Stonebridge Mortgage Solutions Ltd and can source the most appropriate cover from its panel of insurers with a free review of you overall protection and insurance needs. As with all insurance policies, conditions and exclusions will apply.

What our Customers Say...

Your home may be repossessed if you do not keep up repayments on your mortgage.

Simmonds Mortgage Services Ltd is an Appointed Representative of Stonebridge Mortgage Solutions Ltd, which is authorised and regulated by the Financial Conduct Authority.

Registered Office: Simmonds Mortgage Services Ltd, Lexham House, Forest Road, Binfield, Berkshire, RG42 4HP. Registered Company Number: 1152 8784 Registered in England & Wales.

There may be a fee for arranging a Mortgage and the precise amount will depend on your circumstances. This will typically be £399.00 paid once the mortgage offer has been confirmed.

There may be a fee for arranging an Equity Release or Lifetime Mortgage and the precise amount will depend on your circumstances. This will typically be £799.00 and is due on completion of the mortgage.

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