From the latest Halifax index to the RICS index and research by Knight Frank, every indicator shows that the property market is enjoying a post-lockdown boom.
According to Halifax, property prices across the country have increased by an average of 8.2% since April 2020, the highest annual growth in five years, adding a theoretical £20,000 in value to the average property.
Their data is borne out by the latest RICS survey of estate agents across the country, which shows that price growth accelerated in April as demand increasingly outstrips supply.
"The number of new prospective buyers registering was the largest for the month of April in 14 years"
‘During the first two months of the year, rising uncertainty over new Covid-19 variants, the logistical constraints of home-schooling and an expectation that the original March stamp-duty deadline would be missed all contributed to a slowdown in supply,’ says Tom Bills of Knight Frank.
‘This created an imbalance in the housing market that has increased upwards pressure on prices. The shortage deterred some owners from listing their property because they were unable to find anywhere to buy themselves, exacerbating the problem.’
One of the drivers for demand has undoubtedly been the stamp-duty holiday, which is continuing ‘to add impetus to an extremely active market, magnifying the current shortage of available homes as buyers aim to take advantage of the Government scheme,’ according to the Halifax’s managing director, Russell Galley.
The relief is set to taper off from the end of June, but, notes Mr Galley, this is unlikely to reverse the market’s trend. ‘Low stock levels, low interest rates and continued demand are likely to continue to underpin prices.’
The country-house end of the market looks equally rosy: at Knight Frank, ‘the number of new prospective buyers registering was the largest for the month of April in 14 years,’ says senior research analyst Chris Druce.
Interest is especially strong in three regions: the South West, the Midlands and Cotswolds and, above all, the South East, where prospective buyers were up 103% over the five-year average for April (excluding 2020).
‘Haslemere, Tunbridge Wells and Basingstoke were the busiest locations in the South East,’ explains Mr Druce, with Stratford, Oxford and Cirencester leading the market in the Midlands and Cotswolds, and Exeter, Sherborne and Hungerford doing the same in the South West.
Looking ahead, Mr Druce agrees with Mr Galley that the tapering off of the stamp-duty holiday is unlikely to change matters, particularly at the upper end of the pricing scale, where its impact was always relatively more modest anyway.
‘When we asked more than 500 Knight Frank clients back in February what they would do if the stamp duty holiday was not extended in the Budget in March, 88% said they’d either continue with their purchase or look to renegotiate the price. Just 12% said they’d abandon their purchase outright’
However, he continues, ‘the phasing-out of the [relief] is likely to see a return to a more seasonal sales pattern in the country market. Compared against the very high levels of demand we’re currently experiencing, the situation may moderate towards the end of the year, although the adoption of hybrid-working is likely to ensure interest in rural living continues beyond the pandemic.’
Mr Bill adds that, with more properties likely to come onto the market in the coming months, we will see a greater balance between supply and demand, reducing price pressure.
‘We forecast 5% growth for UK property prices in 2021, with current activity levels normalising as the post-pandemic landscape materialises towards the end of the year.’
Properties in the most sought-after rural locations
Haslemere
This pretty, five-bedroom house, which dates from the 1930s and has been in the same family for more than 50 years, enjoys fine views towards National Trust land.
For sale at £1.75 million via Strutt & Parker — see more pictures or enquire with the agent for further details
Tunbridge Wells
This striking Victorian townhouse, which has four bedrooms, combines a magnificent staircase, fine fireplaces and elegant cornicing with a new, Quaker-style kitchen.
For sale at £745,000 via Sumner Pridham — see more pictures or enquire with the agent for further details
Basingstoke
This Grade II-listed house in Old Basing, which originally dates from the 17th century, has been enlarged and improve while remaining true to its period features, and now makes for an excellent family home with four bedrooms.
For sale at £1.1 million via Knight Frank — see more pictures or enquire with the agent for further details
Stratford-on-Avon
The former lodge to Avenue House, this three-bedroom property has many period features that have been combined by the current owners with rustic interiors.
For sale at £645,000 via Vaughan Reynolds — see more pictures or enquire with the agent for further details
Oxford
Designed by HW Moore and built in 1897, this grand house has been modernised to create a 4,625sq ft home that’s ideal for entertaining.
For sale at £3.5 million via Knight Frank — see more pictures or enquire with the agent for further details
Cirencester
With more than 4,000sq ft of accommodation, this delightful semi-detached house has the space and feel of a smaller country house, complete with established gardens.
For sale at £925,000 via Moore Allen & Innocent — see more pictures or enquire with the agent for further details
Exeter
This Grade II-listed Queen Anne house has three bedrooms, a home office and a 25ft drawing room.
For sale at £500,000 via Wilkinson Grant & Co — see more pictures or enquire with the agent for further details
Sherborne
This elegant Victorian house stands out for its high ceilings (10ft), large sash windows and delightful west-facing garden.
For sale at £519,000 via Rolf East — see more pictures or enquire with the agent for further details
Hungerford
Pretty, four-bedroom Croft Cottage overlooks Croft Green, in the heart of Hungerford, and combines period features with modern comforts.
For sale at £695,000 via Russell Marshall — see more pictures or enquire with the agent for further details
Credit: Strutt and Parker
Best country houses for sale this week
An irresistible West Country cottage and a magnificent Cumbrian country house make our pick of the finest country houses for
Credit: Jackson-Stops
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380 acres and 90 bedrooms on the £25m private island being sold by one of Britain's top music producersStormzy, Rihanna and the Rolling Stones are just a part of the story at Osea Island, a dot on the map in the seas off Essex.
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A home cinema, tasteful interiors and 65 acres of private parkland hidden in an unassuming lodge in KentNorth Lodge near Tonbridge may seem relatively simple, but there is a lot more than what meets the eye.
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A rare opportunity to own a family home on Vanbrugh Terrace, one of London's finest streetsThis six-bedroom Victorian home sits right on the start line of the London Marathon, with easy access to Blackheath and Greenwich Park.
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Damon Hill's former home in Marbella is the perfect place to slow downThe glorious Andalusian-style villa is found within the Lomas de Marbella Club and just a short walk from the beach.
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A 327-acre estate in the heart of 'England’s Côte d’Or', with a 26,000sq ft Georgian style home at its heartStokes Hall in the Crouch Valley is an inspiring property looking for a new owner.
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Schreiber House, 'the most significant London townhouse of the second half of the 20th century', is up for saleThe five-bedroom Modernist masterpiece sits on the edge of Hampstead Heath.
