Nationwide April HPI

ended 30. April 2021

This morning @ 7am the Nationwide published its April House Price Index. Below are a selection of alert_responses from property experts around the UK.

One, Rhys Schofield, says: “We even have an example of a client who offered 10% over asking price on three properties, and not a single one of their offers was accepted.”

Another, Robert Payne, says: "One of the estate agents we work with said they have ‘run out of houses to sell’ for the first time ever."

9 responses from the Newspage community

"Throughout April, there has been continued demand in the property market, albeit from a different demographic. We've seen a reduction in home movers, most likely as they will miss the June 30th Stamp Duty deadline, but a big rise in first-time buyers thanks to the Government-backed 95% loan-to-value mortgage scheme. "House prices have continued upwards due to strong demand and a lack of supply, and it's likely this demand will continue due to the confidence returning to the economy after the hit of the pandemic. I expect the property market to remain unchanged for the next six months at least. After that, it's anyone's guess due to the uncertainty that another winter may bring with Covid-19."
"April has been our busiest month to date, with lots of people trying to purchase a property before the Stamp Duty deadline. One of the estate agents we work with said they have "run out of houses to sell" for the first time ever. "That being said, there continues to be a lot of demand from first-time buyers, who are less concerned about the June stamp duty deadline and more interested in what properties are coming onto the market. I predict that once the dust has settled from the June deadline demand will remain high."
"Demand in April has been incredible, particularly among first time buyers given that mortgage availability has improved for those with smaller deposits. The huge bottleneck is a lack of available stock as any reasonably priced and marketed property is snapped up within days of hitting the market. "We even have an example of a client who offered 10% over asking price on three properties, and not a single one of their offers was accepted. "Fundamentally, there are still more buyers than available properties, which isn't going to change any time soon and that means house prices can only go one way and that's upwards."
"The property market has remained incredibly busy throughout April as buyers continue to be encouraged by the Stamp Duty holiday, and the increasing availability of Government-backed high loan-to-value mortgages. "While the Government seems determined to keep encouraging the housing market, it would be foolish to bet against activity and house prices remaining high. "As the economist John Maynard Keynes famously remarked, “the markets can remain irrational longer than you can remain solvent.”
"The property market in April has been rampant, with demand massively outstripping supply. I expect this to continue for the rest of the year if we carry on with the current plans for the easing of lockdown restrictions. The feel-good factor will drive the property market forwards. "Life hopefully returning to a relative normal will give lenders more confidence, especially when it comes to 95% loan-to-value products for people with smaller deposits. And obviously the Government's guarantee of 95% LTV loans will also boost lender confidence."
"We have had a lot of clients looking to buy, especially in light of the Stamp Duty extension. A lot have been looking to buy in the countryside either as a main residence or second/holiday home. Prices seems to be increasing in all areas. "In some areas it appears there isn't enough supply, bringing back gazumping or a sealed bid process. "It will be interesting to see what will happen in the second half of the year, with the Stamp Duty relief expiring and the furlough scheme coming to an end."
“April has been another bumper month for the property market ahead of the Stamp Duty deadline, and much like the PM’s flat, the property market is still a game of supply and demand, and where the money’s coming from. “The Government’s 95% lending and mortgage guarantee scheme introduced in April will allow a greater diversity of buyers, but it remains to be seen whether housing supply will keep pace with demand — solicitors, lenders and agents are only just catching their breath.”
"Throughout April, the mortgage and property markets have been extremely busy. Mortgage brokers, solicitors and estate agents alike have been working longer hours than ever to meet the sheer level of demand. I expect transaction levels to continue to be strong throughout the rest of the year, especially with more lenders returning to higher loan-to-value levels following the introduction of the Government's guarantee scheme."
"Rampant demand and not enough supply is the only way to describe the property market right now. April was our busiest month ever. No end of prospective buyers have been telling me how they aren't even getting the chance to view some properties as they are sold before they can even get there. "The Mortgage Guarantee scheme remains in place until the end of next year and first-time buyers will keep their £300,000 stamp duty extension, which starts again from the 1st of July. With all of that pushing up from the bottom I expect the market to keep on moving."