House prices in Portsmouth have hiked by thousands of pounds since the inception of the COVID-19 pandemic, plunging the English city into more housing crises. Once estate agents resumed work after the initial Covid lockdown, the property market in the country shot to the moon.
Factors like low-interest rates (95 percent) on mortgages, the end of stamp duty holiday, and the London exodus meant that interest has increased in the South West. Since 2007 when there was a financial crash, the new figures show the most significant boom in property prices.
Factors that Fuel House Prices in Plymouth
Because of the growing house prices, the locals may experience dwindling housing stock across Devon and Cornwall. Hence more attraction to England’s rural areas for those working remotely. A perfect example is Plymouth city, where house prices went up byalmost 10% in a year, translating to about £16,000 more before the coronavirus pandemic.
In March 2020, average house prices were £178,183, but now they are at £194,157- a 9% increase. The boom in the London housing market (3%) is nowhere close to Plymouth. However, as the rise in prices may be high, it is nowhere near the South West’s incredible peak.
In reality, it is significantly below the national average rise of 10.2% in the same period. An average house in London costs £275,000. ONS believes the pandemic pushed house buyers to rethink their housing preferences, which resulted in larger cities turning unattractive.
Rural Areas are More Appealing than Big Cities
After the pandemic, people prefer rural areas. Rural Cornwall awards estate agents record-high interests even on the most mundane properties because of the house buying frenzy. Another factor is that some bids on properties drive prices up: Nationally, an average detached home increased by 11.7% in a year, while flats increased by 5%.
A shift in taxes incurred on housing transactions also pushed sellers to increase house prices, reducing buyers’ overall costs. A suspension of tax paid on a property purchase on July 8, 2020, was effected immediately in England and Northern Ireland. Scotland and Wales later announced the same policies in the same month.
Properties in England and Northern Ireland of up to £500,000 attracted no tax, while in Scotland and Wales, the threshold was £250,000. In March 2021, the tax holiday for Scotland ended, while their Wales counterparts had an extension up to March 31, 2021. There was a decrease in the tax-free threshold in England and Northern Ireland by half for about three months.
How Locals Can Beat Rich Upcountry House Buyers in Plymouth
There is a humble demand for moderately priced houses (mid £200,000s) and a steady demand for people to move to the southwest. With new buildings coming up to the South West market in Exeter at £300,000-£400,000. The amount is higher than the average prices, which affects the average price transactions. It is imperative to always take the help of a conveyancing solicitor in Plymouth such as AVRillo to get expert help before making any financial decision.
Don’t be moved by Theories.
COVID19 pushed people to change how they do many things, including business. For instance, Working remotely creates time for family and social circles. Cornwall has always been a desirable place to live, but today people want to work remotely and visit London once a month.
Mortgages make Money Borrowing Easy
Availability of mortgages means that borrowing money is easy, even with the handful of issues that first-time buyers experience. When the government availed mortgages, it was like pouring petrol into an already hot market, and the 95% mortgages opened the market for more people.
Stamp Duty Holiday and Low-Interest Rates
People save on the stamp duty holiday then use it to buy houses for different purposes like renting them out or holiday vacations. A combination of the stamp duty and low-interest rates pulls people into buying Cornwall houses now more than ever before.
Old-Style Cornish Houses and Cottages
The old-style Cornish houses are doing great in the market, which brings in the out-of-county market. There is high competition for small bungalows, which are the most expensive in their category, and they win the bills because they are appealing, and first-time buyers can easily afford them.
Most people buy them to rent them, especially to the elderly and young children who cannot keep going up and down the stairs. For these reasons, properties are highly-priced, a disadvantage that hits first-time buyers the hardest.
How to Win the Bid as a First-time Buyer
As a first-time buyer, there is one golden move that can be made to own that lovely, beautiful house. Don’t appear desperate, make it clear to the seller that there are no strings attached to the property/house.
Please don’t take it like buying for the first time is a disadvantage. No. Time and flexibility are on the side of the buyer, enabling them to offer a chain-free timescale even when the person is ready to move. If the horses can be held for a few months and exercise patience, the quest is likely to go through, especially as it is a move sellers cannot afford.
Show as a genuine local buyer.
The highest offer will attract most people but be the type of buyer who settles for that treasured family home. Genuine buyers have a special place even in busy markets because, in most cases, the higher the offer, the less genuine buyers found.
Taking a different path by appealing to the property owner after the agent, who can always try to mince more cash, often works. Slide a letter under the seller’s door, the agent informing them of the interest of a first-time buyer in the area, which can be a great advantage.
Sort Out Finances first
It is not uncommon for first-time buyers to send offers before a financial guarantee to a seller, which is a huge mistake. Sorting out mortgage puts buyers in a position of power as sellers want to upscale, and it is worthy of buying at that time. Sort out mortgage, view several properties on offer, and then make offers once they are financially secure.
View everything in the price bracket
First-time offers have a preconception of where they want to move to, which is excellent. Buying the first ideal property puts the consumers up against people with experience, helping them learn the area better.
The tough competition for Cornish homes in Plymouth feels like a gold rush despite rising prices and bidding wars. These factors make new buyers feel like they will never afford these homes, even those who grew up in the area.
To buy a home in London, one needs to be ready because all properties in the range of £500,000-£1 million sell within a month, and if it is still on the market after three or four months, they can’t sell and the price must come down.