Sunderland Housing Market Update
With the housing market still open during lockdown, how busy is it currently?
It seems that people spending more time indoors has led to more focus being concentrated on deciding what they want out of their property and what is important to them. This has resulted in quite a lot of people looking to move, as their priorities change. For example, looking for an additional room as an office and in particular for those in apartments, access to a garden.
In Sunderland and the north east there has been a lot of movement towards the coast in recent months, meaning that Sunderland house prices are performing really well in certain postcode areas. As a whole, however, Sunderland has seen a 7% decrease in house price growth, over the past five years.
Properties, and apartments in particular within the city centre are a particularly tough sell at the moment, with a 15% drop in the last five years. This seems to be in keeping with the rest of the country, where even London is seeing a decrease in demand and therefore prices, as homeworking means that people no longer need to be close to the city for work. Industry press seems to support the idea that this will continue to be the case, going forwards.
Is the current Stamp Duty holiday having an affect on sales?
Stamp duty is not something that is relevant to everyone, especially in areas of the country such as this, where the average property price is around £180,000. Stamp duty is only due on properties over £300,000 so it’s important that those looking to buy a house in the area are aware of that.
In other areas of the country where the property prices are a lot higher, the savings that could be made through the current stamp duty holiday, which is in place until 31st March 2021, will be significant. In the north and certainly in Sunderland, it hasn’t had much of an impact, however.
What do you think will happen to the housing market after the stamp duty holiday?
Going back to last year when the chancellor announced the stamp duty holiday, the market had already dramatically risen. I don’t think the stamp duty holiday really had an impact on the increase in the market, and therefore I don’t foresee changes when it ends.
What does the housing market, particularly in Sunderland, have in store for the rest of 2021?
At this point, we are awaiting the outcome of the stamp duty extension in parliament, but until the budget takes place on 3rd March, it’s difficult to say whether or not it will be extended, however I think it’s unlikely. Perhaps there will be leeway for those who have already in the process.
I think that people were already looking to move for more space, a garden, a change of environment, for example and that the lockdown has had a bigger impact on the housing market. I expect this pattern in moving for those reasons to continue this year, regardless of what happens with the stamp duty holiday.
In Sunderland particularly, the housing market appears to be heading towards quite a healthy year.
Is 90% lending back?
There are a lot more lenders in the marketplace , even some high street lenders offering 90% Loan to Value mortgages and some are even talking about the possibility of the return of 95% options. There are still lots of first time buyers, busy saving for their deposits and are ready to go once they’ve got their 5-10%.
Lenders are currently, understandably, changing their terms every day to take inconsideration of furlough and the increase in self-employed workers. It certainly seems to be opening up a little bit more over the last nine or ten months.
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Housing Market update Sunderland with your local agent CS Mortgage Solutions