With so much demand for homes of late, it is no surprise to learn there is a backlog in the housing market.
The stamp duty holiday has encouraged many people to look for property, and buyers are keen to see their deals completed before 31st March 2021.
So much so, that many professionals in the housing and mortgage sector have been overwhelmed.
It must be remembered that the pandemic is placing businesses under considerable pressure. Many are operating with a reduced workforce, and if people are working from home, there is a high chance business are not operating as productively as they have in the past.
Therefore, it shouldn’t be a surprise to learn property deals have slowed down. This is a concern with the looming stamp duty holiday deadline, but there isn’t a great deal that can be done.
A recent study indicates property deals are taking 29% longer than average to conclude, once an offer has been made on a property.
Buyers and vendors need more time to conclude deals
The time taken to sell property is said to have increased from 96 days to 124 days. With the stamp duty holiday deadline in place, there has been a pressing need for deals to conclude as quickly as possible.
Of course, many people are likely to miss out on the stamp duty holiday deadline, and this might impact on their finances, and even their ability to conclude the property deal.
There are fresh challenges in the London housing market
The same study suggests the average time to exchange has risen from 97 days to 125 days in the capital, and this is a concern for us at BR Estate Agent, and no doubt yourself. Also, the situation is getting worse, because when you look at the transactions in the past 30 days in comparison with the previous 180 days, the average time to conclude a deal is 160 days.
Movewise said; “There’s a bottleneck in the conveyancing process as councils struggle to handle the level of property searches being requested and conveyancers drown under an increased workload.”
We are keen to help you as best we can, even in challenging times. If you are looking for guidance or support in the property market, please get in touch.
Tom Scarborough, Movewise founder, says: “Although houses are going under offer on average five weeks after initial listing, the bottleneck in the conveyancing process is causing a headache for both sides of the transaction. Buyers are still keen to beat the stamp duty deadline and sellers need to be aware of that before accepting an offer. To avoid transactions collapsing, any offer being made now should be on the understanding that completion is likely to be after the tax holiday ends.”
Tom continued by saying; “If required, buyers and sellers should enter into any negotiation on price, before the conveyancing process commences. An honest and frank discussion upfront, could avoid a transaction failing further down the line, after money and time has been spent on searches and surveys.”
If you are looking to make a move in the Bromley property market, and you would like to speak with local experts, please get in touch. If you would like to arrange a property valuation, contact us and we will set this up for you. You can phone your BR Estate Agent on 020 3633 8620 from 9am till 9pm seven days a week or visit our website www.br-estateagent.co.uk for more information.