End of Stamp Duty Holiday
The stamp duty holiday led to a surge in properties being brought in 2020 and 2021. Come October 2021 the Stamp Duty Scheme will come to an end.
According to Nationwide Building Society July 2021 recorded the first dip of 0.5% in the housing market which is largely because of the end of the stamp duty scheme
So, what do we think will happen come the end of the stamp duty holiday? Although it would mean a return of normal taxing, we suspect that the housing market will continue to thrive however, we may see a dip in housing sales in rural areas. Reason being is that during the last two years we have seen more people buying second homes to make the use out of the scheme, with this incentive no longer in place, fewer people will be investing in second homes. Aside from this, the need for homes is ever increasing and more people relocating to more coastal areas means prices could stay high.
Furlough Scheme
With the furlough scheme coming to an end in October we could see a rise in properties available to the market place as more people lose their jobs and can no longer afford mortgages. If the interest rates also increase as they have been sitting at record lows to could make mortgages more expensive too. These factors together could slow the demand for sale properties as more and more people look to let, thus lowering house prices.