I’m sure you would have seen the effects of this in your local market, but what have we seen locally in our investment area?
Properties put on the market and sold within 24 hours. Maximum a week if the vendors / agents are wanting multiple offers.
Multiple offers above asking.
Not many properties coming onto the market & not as many falling through
3 beds going for the price of 4 beds 6 months ago. The ones that are priced right, are selling fast. Any stock lingering around is overpriced for what it is.
Big competition from families for the same properties we are interested in as the “race for space” continues in the rush towards the Stamp Duty deadline.
Conveyancing taking longer than ever with solicitors, managing agents, land registry, council etc all taking significantly longer than normal due to back logs.
So how does this affect us as property investors?
This is the economics of the UK Property market (and indeed the world) at it’s finest - supply and demand. Covid-19 has made many reassess their current situation & importance of living space, where before it was all about being commutable to the office. Lockdowns have enabled people to save more than usual and those that can are using those funds to upgrade to properties with bigger outdoor spaces.
For us, the demand is definitely there and more competition just makes prices soar, especially with the race to ‘get in’ before the end of the stamp duty deadline which is tapering off over the next few months. This winter will be an interesting time to buy when stamp duty returns to normal pre covid levels - just got to keep hanging in there.