The sun might be in, but the property market is hot.

According to the Bank of England (BoE), UK homeowners borrowed more on their mortgages than they repaid in March – a record £11.8bn - with gross mortgage borrowing reaching £35.6bn. New mortgage approvals reached 83,000, which is 10,000 more than in February 2020, just before the Covid restrictions were put in place.

After so many months of people syphoning spare cash into reducing their borrowing, this is a positive sign for the market.

The turnaround has, of course, been encouraged by low mortgage rates and the stamp duty holiday, which saw many buyers rushing to complete before the offer ended. The deadline, originally 31 March, was subsequently extended until 30 June and the concessions are now timetabled to phase out completely by 30 September 2021.

No signs of a fall in high house prices

The question on everybody’s lips is whether the market is being held artificially high by the stamp duty holiday. According to the experts, it’s not. 

The UKs’ largest mortgage lender, Lloyds Bank, thinks that house prices will remain high, even after the stamp duty holiday ends at the end of September. The market could even see a 0.8 per cent increase this year, in part due to the Covid vaccine aiding the economic recovery.

New lifestyles create new demands from buyers

Following a change in working habits, people’s accommodation needs have changed, and this will continue to drive the market. If you are looking to sell your property, it is important to highlight the features that people are looking for.

Gardens/balconies – for properties with some outside space, display a small garden table and chair if you can, as this will help potential buyers visualise themselves using the area to work outside (when the weather permits of course!), as well as using it as a place to relax.

Spare rooms – take out the double bed and replace it with a simple computer desk and chair. This doesn’t need to be expensive furniture, just something that helps demonstrate how the space can be used. The addition of a sofa bed will show its multi-use potential, covering all the bases of what any potential buyer could want or need.

These are just two examples, if you’re looking to sell your home our Residential Sales team can provide guidance on how to present your property to meet new buyer needs.