Confidence remained strong across much of the UK property market as buyers continued to pursue their plans to move following the reopening of the market after lockdown.
Figures from Rightmove showed that the average asking price of a property reached a new national record of £323,530 in October 2020, representing a 1.1% monthly increase and annual growth of 5.5%. Rightmove also forecast that annual house price growth could reach around 7% by the end of the year.
Demand was being driven by a combination of pent-up activity following lockdown and changing buyer priorities, with many purchasers seeking properties better suited to homeworking and more time spent at home.
However, the strength of demand also created significant pressure across the property transaction process. Mortgage lenders, surveyors and conveyancers faced substantial backlogs, while a growing number of agreed sales were working their way towards completion.
For buyers hoping to benefit from the temporary Stamp Duty Holiday, timing became an increasingly important consideration. With the scheme due to end in March 2021, buyers entering the market later in the year faced a greater risk that delays could prevent their purchase from completing before the deadline.
The period demonstrated the difference between strong buyer demand and the practical ability of the housing market to process transactions. While asking prices continued to rise, the speed of completion depended heavily on the capacity of lenders, legal professionals and other parties involved in the buying process.
