Written by Lisa Proffitt | 17th March 2021
For the vast majority of home owners their property is their biggest asset. Whether that asset has increased in value due to the pandemic is a topic that has been discussed around kitchen tables all over the country. Whatever fears there may have been for the housing market at the start of the pandemic, the reality is that demand for prime property has increased and prices have risen.
Not only that, prices are predicted to carry on rising for the next five years, with country homes in Michael Graham’s region at the epicentre of that forecast growth. The following five reasons explain why faith in country house bricks and mortar is well-placed:
Housing market help from the government: The speedy vaccination programme and government support of the housing market are boosting consumer confidence. A healthy housing market is seen as intrinsic to economic recovery. When people think their wealth is secure they are more inclined towards a spending spree. Consequently, the spring budget saw the Chancellor pulling out all the stops to prevent house prices falling. At Michael Graham we’re prepared for a very busy spring as the benefits of the three month extension of the stamp duty holiday and the 95% mortgage offer begin to take effect.
Race for space: Home owners in the country thinking of selling this spring or summer are safe in the knowledge that the trend of moving to the country shows no sign of slowing down. Most experts agree that for lockdown weary buyers who want bigger homes, the ‘race for space’ will result in country properties steadily rising in price over the next five years. Walgrave in Northamptonshire and Willoughby in Warwickshire are the sort of villages where prices are expected to rise at a higher rate than in many other parts of the country.
Rise of 24% for property prices in Michael Graham region: Property prices across the UK are predicted to rise 21.1% over the next five years, but that growth will not be seen everywhere. Property markets furthest from the capital will see the highest rises, with the East Midlands and West Midlands predicted higher than the national average at a robust 24% growth rate. The country house market is expected to sizzle across the country with prices rising everywhere by at least 20%.
London will see the weakest price growth: Many people’s working lives, lifestyles and priorities have changed for good as a result of the pandemic. Big cities have lost much of their appeal, especially for families with young children. Inevitably this lack of demand for properties in the city will have a significant effect on their value. In discouraging news for London home owners, the latest research suggests that over the next five years London will have the lowest price growth in Britain at around 12%, less than half of that expected in the Midlands.
Mortgage applications at new high: The Bank of England has reported an explosion in the number of new mortgages, now at its highest level since 2007. The new 95% mortgage scheme will help first-time buyers get on the property ladder and for the first time in the UK, buyers will soon be able to fix their mortgage for 40 years using mortgage broker Habito, with no early repayment charges or exit fees. This is in response to an expected increase in demand for longer-term fixed deals and there are mutterings that rival lenders could soon follow suit. Both of these new mortgage schemes could fuel the demand for property and keep prices high, which is good news for sellers.
If you would like to find out the value of your home in today’s market, we would love to hear from you. You can book a free market appraisal on our website, or call your local Michael Graham office to talk things through. Whether you want to sell now or later in the year, let’s move forward together in 2021. The three homes for sale below are all in the sought after county of Northamptonshire.