House Buyers Still a Rare Sighting in the Housing Market
House buyers still are considered a rare sighting in the housing market despite the upsurge recently of first time buyers due to the stamp duty holiday. The tax discount was for first time buyers that purchased before March 24 a property under the level of £250,000. The discount has been in effect for over two years but with the deadline drawing near many came out to grab a low interest mortgage along with a waived stamp duty. Once the stamp duty holiday ends it is unknown if confidence has been restored and buyers will continue to come out or if the boost in sales will end.
The housing market is basically stuck and unmoving without first time buyers. Those with starter homes do not have buyers so that they can move up into upgraded properties and those buyers are then needed so others can move up the rung. Without anyone climbing onto that first rung of the property ladder the whole thing becomes frozen.
Homeowners not wanting to move are also anxious for buyers to return to the market. They hope to see property values turn around and begin to grow again. Without buyers their property values will decline and put many more in danger of going into negative equity. Others want equity to improve so they can get a remortgage that can put them in a more secure financial position should interest rates begin to increase. That won’t occur however unless buyers can be persuaded to come out and buy and push house prices upward.