The first 100 days post lockdown

The Ripon Property Market Post-Lockdown – the First 100 Days

The Ripon Sales Market, Post-Lockdown – the First 100 Days

With only around 1 in 5 Ripon house sellers actually selling their home in the last month, Ripon sellers and buyers will need to continue to be pragmatic if the surprisingly strong current levels of activity in the Ripon property market are to be sustained.

To start, we had the once in a lifetime event of the credit crunch in 2008, we then had another once in a lifetime event with the Brexit vote in 2016 and now the mother of all ‘once in a lifetime’ events, Coronavirus in 2020 – three once in a lifetime events in the space of 3 Olympic Games!

The doom-mongers forecast that the British property market would drop like a lead balloon on the scale of the 1989 housing crash (where property values dropped by 30.87% in a couple of years) but would be nothing compared to the tsunami that was Covid. Yet in the first 100 days of the property market coming out of lockdown, behavioural and economic changes mean that many Ripon homebuyers are now even more dedicated to moving home and the Ripon property market is doing quite well.

Going into lockdown, the effect on activity in the Ripon property market during those two months was expectable and predictable as it was placed in suspended animation during April and May. When the Ripon property market re-opened in mid-May, nobody predicted what happened next. Of course, many of us in the property industry estimated some release of pent-up demand from the Boris Bounce, yet nobody anticipated such a ricochet in activity in the Ripon property market.

This is particularly interesting when one considers GDP dropped by 20.4% in Q2 2020 (fascinating when compared to notable historic times when it dropped by 13.8% in WW2 and 16.7% in WW1), yet amidst the largest contraction in the UK economy ever in a single quarter, what wasn’t expected was an increase of potential property buyers and property sellers wanting to move post lockdown.

Some have cited this boost to the property market on a number of factors. Firstly, we have had the Stamp Duty Holiday, others have pointed at the never seen before 0.1% Bank of England base rates making mortgages cheap, then we had the furlough scheme which protected so many jobs and finally, the pent-up demand from the Boris Bounce.

Yet, when one actually talks with Ripon buyers and sellers, whilst all of them cite one or two of the above reasons, all of them mention and talk about how the lockdown has made them re-evaluate and reconsider how they want to live, their work-life balance and where they want to live. This is also reflected with tenants changing their requirements when looking for a property to rent (so Ripon landlords – be aware of this).

Demand for apartments in the centre of Ripon has eased off, whilst demand for property with a good-sized garden or other outside space has increased. One question we get asked all the time is also the broadband speeds, although they are quite decent in Ripon (the average broadband in our local Council area being 38.1 Mbps download and 7.6 Mbps upload).

So, with record numbers of Ripon properties coming on to the market – is it boom time for Ripon homeowners?

Of the 81 properties that have come onto the market in Ripon over the last month,

only 15 of them have agreed a sale

(a percentage of 18.5%)

That means around 4 out of 5 Ripon people that have placed their property onto the market have not found a buyer yet.

Yes, the Ripon property market is good, yet the number of people who have placed their property on the market has also gone up. Ripon estate agents have never been so busy putting property on the market and I feel sorry for the chap who is putting up all the for-sale boards – his wife hasn’t seen him in daylight for weeks!

But that does mean you are in competition with so many other properties on the market (the number of properties coming on to the market typically at this time of the year is about a third to half less). The Stamp Duty boost ends in March 2021, so that means you need to have found a buyer by November at the very latest. By overegging your asking price, to test the market, might mean you will lose out on this hiatus and could end up missing the boat!

The prices being achieved for the Ripon properties

that have been selling have been fair and realistic and have stood up much better

than many were originally predicting.

Yet as the country looks forward, given the ambiguous nature of the outlook for the British economy and the possibility that Covid-19 may be with us for a little while yet, I must implore Ripon property sellers to be realistic with their asking price so a greater number of you who want to make the move, are able to do so.

Remember, always get a survey!

Remember…always get a survey!  Hidden defects such as dry or wet rot, structural movement or dampness are some of the common defects our team often find. These can often get worse over time if left untreated and could be an expensive problem to fix once you have moved in.

We can highlight specific defects that may not be immediately obvious when you have initially viewed your dream property. No two properties are the same, and the knowledge and experience of our surveyors can help to identify issues and provide you with the whole picture before making that commitment.

Here are a couple of recent photos of retrofitted damp treatment that could be doing more harm than good. These are quite obvious to the naked eye, however we helped identify future issues, make recommendations for action and provide the buyers with confidence of the complete picture of the property they were buying.

Traditional properties often don’t like modern interventions. Like the pictures shown, these often mask a symptom rather than diagnose the cause. All homes are subject to some defects during their lifespan, so before making that investment. Remember, always get a survey.

Contact us to discuss the property you are purchasing and we will discuss the right survey for you.

Stamp Duty Land Tax – The new temporary reduced rates explained

With immediate effect the new Stamp Duty Land Tax (SDLT) threshold of £500,000 will apply and will run until 31 March 2021. This means any buyer purchasing a primary residential property between 8 July 2020 and 31 March 2021, up to the value of £500,000, will be exempt of paying Stamp Duty.

According to the release by the Government the exemption will apply to all primary residential property purchases, so regardless of whether the purchaser is a first-time buyer or someone who has owned a property before.

This means that on purchases over the £500,000 threshold, buyers will pay a 5% SDLT on the portion from £500,001 to £925,000, 10% on the portion from £925,001 to £1.5 million and 12% on any portion over £1.5 million.

Visit gov.uk for more information

When it comes to purchasing a second home, the Government has introduced higher additional rates with a 3% higher rate on top of the new revised standards. For people purchasing a holiday home up to the threshold value of £500,000 they will pay 3% SDLT.  Those buying a second home over the threshold with pay 8% on the portion from £500,001 to £925,000, 13% on the portion from £925,001 to £1.5 million, and 15% on the remaining portion over £1.5 million.

Visit gov.uk for more information

At Joplings we have experienced an increase of valuations and new instructions with clients looking to take advantage of the savings that can be made by the reduction in Stamp Duty Land Tax.  Many buyers will not pay any  stamp duty when purchasing a property up to £500,000. This money could be used to purchase a new kitchen or bathroom suites for their new home.

To take advantage of this we believe you need to place your property on the market as soon as possible, ideally before the end of September to give yourself the best chance of selling before the 31st March 2021.

For a free valuation to see how much your property is worth contact us at our Thirsk or Ripon office.

Call us on 01845 522680 or 01765 694800 for further advice and information.

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