Recovering property market helping the wider economy

7th September 2020

Recovering property market helping the wider economy

The recovery in the property market since the first lockdown restrictions were eased has been surprisingly sharp with research from Halifax House Price Index showing that house prices in July have hit a new record and that sales have risen sharply.

That’s good news for homeowners but this also has strong positive knock-on effects for the wider economy which sometimes gets forgotten in the debate about house prices and transactions.
A cut to Stamp Duty and mortgage interest holidays have played a major role in supporting this increase in activity.

The Stamp Duty cut is saving buyers an average of £14,000 in London and the South East and Zoopla research shows demand has been particularly strong in London and the South East of England since the Stamp Duty cut came into force on July 8. Property sales in London increased 27% alone in the immediate weeks after the announcement.

That is a pretty emphatic result and it is going to lead to a lot of additional economic activity. Moving to a new home triggers spending on white goods, new furniture, decoration and refurbishment. Builders, contractors and a wider ecosystem all benefit from the spending triggered by a housing transaction and that money ripples out into the local economy. This is why keeping the housing market active is so important.

Jaxons’ Lettings and Sales agents are continuing to offer prospective renters and buyers guided video tours of properties. In person viewing appointments complying with social distancing, are available following virtual viewings.