Why is the housing market booming?

2020 has been an unprecedented year in all aspects of life, and this goes for the property market too. Over the last few months, buyers have been searching in their thousands, all hoping to secure their new dream home. So what’s been driving the trend? Scott Howitt, Sales Director at Chartwell Mortgage Services outlines why the property market is busier than ever and explains the very ‘human’ reasons behind the recent boom. 

With so much doom and gloom in the press you’d be forgiven for thinking few people are currently looking to buy a new home… but this couldn’t be further from the truth. In the last three months alone at Chartwells, we’ve seen our mortgage enquiry numbers triple! Zoopla is also reporting that the number of new sales agreed in August is running 76% ahead of the five-year average. So what’s happening, and why are so many people choosing to make the move now? 

The two main drivers can be explained through finance and psychology, so let’s take a look at these in more detail. 

Financial awareness

When it comes to financial incentives, there’s never been a better time to buy. While the current Help To Buy scheme is coming to an end, new homes will soon be available to purchase through the revised Help To Buy – coming in 2021. While there will be financial caps and availability for first time buyers only in future, demand is still expected to be high.  This is why we’re seeing so many buyers acting quickly now to find the right home.

Added to all of this, is the great news on Stamp Duty, which the government announced over the summer. The Stamp Duty holiday has already come into effect and is saving buyers thousands of pounds off the total price of buying their new home, so it’s no wonder so many people are deciding that now is the right time to make the move. 

Human psychology

Let’s face it, 2020 has reminded every one of us what’s really important in life. The time spent alone, or just with immediate family, has helped many buyers to refocus on their dreams. Every day I hear from buyers who have finally found the time to sit down and figure out what they really want their life to look like moving forward.

We normally see this sort of trend after Christmas or the summer holidays when families have spent time together, but we’ve never seen such a prolonged period like this over the summer months.

Whether it’s moving to a new area, having the garden they’ve always dreamed of or investing in a property to pass down to their kids in the future, the reasons are varied. The consistent driver though has been an unprecedented year of reflection and emotional needs combined with sound financial reasoning.