Commentary: New Rightmove data indicates "dark clouds building" over UK housing market
We give market commentary when journalists or news outlets approach us directly for comment on specific topics. We share our commentary here too. See below.
Although market activity remains buoyant, there are certainly dark clouds beginning to build on the horizon. We’ve never been in a situation like the one we’re currently seeing, where so many homebuyers are delayed for months on end. There will be a serious number of sales that fail to complete before the end of March, at which point we could see mass fall throughs as buyers look to change the goalposts at the last minute in order to account for the additional cost of stamp duty. Such a drastic drop in transactions is almost certain to cause house prices to fall and while this may only be a temporary drop, it will no doubt be prolonged due to the tricky economic climate caused due to Covid.
20% of sales from July are still on-going
Although market activity remains buoyant, there are certainly dark clouds beginning to build on the horizon.
According to Rightmove's index this month, one in five buyers who agreed a purchase in July last year have still not completed more than six months later.
We’ve never been in a situation like the one we’re currently seeing, where so many homebuyers are delayed for months on end.
Impending Stamp Duty Deadline - 100,000 sales at risk
Furthermore, Rightmove are estimating that 100,000 of these agreed sales will fail to complete by the end of March, meaning purchasers will miss out on on their expected stamp duty tax saving.
In our recent survey of over 3,000 home buyers, 39% told us they would need to withdraw from the purchase if it didn't complete in time for the Stamp Duty deadline at the end of March.
This means we could see fall-throughs and renegotiations on a massive scale as buyers look to change the goalposts at the last minute in order to account for the additional cost of stamp duty. This would leave huge numbers of sellers looking for someone to buy their house quickly to help get their plans back on track..
If that happens, such a drastic drop in transactions is almost certain to cause house prices to fall and while this may only be a temporary drop, it will no doubt be prolonged due to the tricky economic climate caused due to Covid.
Data shows an increase in prices - but beware
Rightmove's index reports an increase in prices of 0.5% this month, after falling for 3 consecutive months from November to January. But it's important to remember that Rightmove's data is based on seller asking prices, and not what sales are actually being agreed at, much less what they're actually completing at.
You can view Rightmove's full release here: Rightmove House Price Index, February 2021
IN THE NEWS
Browse coverage of this news piece
Our research, guides and commentary are picked up weekly by journalists at national and regional news outlets. See where this one has been covered so far.
A BIT ABOUT US...
Selling your home to Yes Homebuyers
- Yes Homebuyers buy your home directly from you so you can sell your house fast and avoid waiting around to find a buyer on the regular market.
- We offer flexible timeframes to suit you and on average, complete a sale within 30 days.
- Yes Homebuyers' quickest completed purchase was made in six days.
- We guarantee the price we will pay, unlike some buying platforms who reduce their offer shortly before completion.
- There are no fees or costs involved and we cover all legal fees involved.
- There are no contracts or tie-ins even if you accept an offer, and no viewings to take care of.
About Yes Homebuyers
We can purchase your home from you directly, giving you the easiest, fastest home sale possible.
Contact us for a free valuation and offer. We can buy your home in as little as 14 days.
Browse latest articles
Subscribe to get our team's latest insights & research instantly to your inbox.
You can unsubscribe at any time.
See all News, Press Coverage, Commentary & More
Let's get started
"Personal and efficient -
"the best way to sell a house"