Instant Valuation

  • A net balance in demand of +64% was reported by survey participants for renter demand. This is the strongest result since 1999.
  • In the sales market, participants recorded a net balance of +16% for new buyer enquiries, up from +9% in December. This is the strongest figure since May 2021.
  • Conversely, supply of properties (new instructions) remains constrained in both the lettings and sales markets and will continue to put pressure on prices. Source: Dataloft, RICS (net balance of survey participants).
  • The RICS net balance score is calculated by the proportion of survey respondents reporting a rise minus those reporting a fall in the given indicator.

 

  • 44% of home buyers in England were eligible for a Stamp Duty Land Tax (SDLT) holiday (or claimed relief) in 2021, totalling 566,700 sales.
  • Those qualifying in the 5 years preceding 2020 averaged just 6%. This highlights the impact this incentive has had on stimulating the housing market.
  • The SDLT holidays have contributed to sales volumes increasing by 43% in 2021, following six years of falls.
  • It is estimated over 60% of purchasers in Wales benefitted from a reduction in stamp duty taxation during the first six months of 2021 (Stats Wales).
  • Source: Dataloft, HMRC (residential sales only)

  • The Federation of Master Builders' latest State of Trade Survey reports that 74% of builders have raised prices for their work in Q4 2021.
  • At a time when they are reporting a 19% increase in workloads, 95% of builders are also seeing a rise in the cost of materials.
  • Labour shortages are also making it hard with 43% struggling to hire carpenters and 41% finding it difficult to find bricklayers.
  • Increased cost for home improvements, labour shortages and material price rises, may prompt homeowners to consider moving over improving.
  • Source: Dataloft, Federation of Master Builders

  • New buyer enquiries rose modestly in December (+9%) marking the fourth successive monthly rise in demand.
  • The end of the stamp duty break curtailed demand to some degree but since market reopened back in June 2020 demand has significantly outpaced the level of supply (new instructions).
  • Demand has been outpacing supply ever since the market reopened in June 2020 with only a slight deceleration when the stamp duty break came to an end.
  • New instructions recorded a net balance of -14% in December resulting in a 9 month run of falls. It is this lack of stock that is putting a cap on sales activity.
  • House price growth is likely to continue due to the imbalance in supply and demand. More stock is needed to unlock the system and ensure chains can be completed.
  • Source: Dataloft, RICS

  • Change of scenery/lifestyle remains a key driver behind home moves, as the persistent shortage of supply has held back potential home moves.
  • Change in lifestyle/scenery becomes a more significant reason as the value of the home rises, peaking at 21% in the £750k – £1m price band.
  • At the lower end of the housing market, a need or desire to upsize is the main driving force behind home moves peaking at 23% in the £125k – £250k price band.
  • Other key drivers behind home moves are wanting to be closer to family (10%), retirement (7%) and bereavement (6%). Source: Home Moving Trends Survey (July 2021) analysed by Dataloft for Property Academy
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