Record interest in purchasing homes, the extension of the stamp duty holiday and the incoming mortgage guarantee scheme has pushed the property market to increasingly heady heights.
“How will buyers and agents cope with 1.4 million transactions in 2021?” asks Simon Bath, CEO of house buying app Moveable. Bath believes that digitisation is key to ensure there isn't a housing bottleneck
A recent survey by Rightmove showed that demand for houses is booming, with visitors to their website over 40% higher than this time last year, resulting in a corresponding increase in prices. This comes as last week Savills predicted that 2021 would see over 1.4 million property transactions completed, which would be a 33% increase on 2020.
There is, however, some concern that this purchasing boom could result in lengthy bottlenecks. The increased demand for the services of conveyancers and agents prior to the stamp duty holiday being extended was leading to predictions that up to 100,000 buyers would not be able to complete in time. While this concern is now delayed, the high demand could leave some waiting months to complete their purchases.
“Government interventions and market conditions have created a perfect storm in terms of buyer demand,” says Bath. “Combining this with the fact that buying a house is traditionally a long and complicated process, we could see many waiting months for completion with demand exceeding the sector’s bandwidth for delivery.”
"The pandemic has inspired a step-up for digital transformation that is now mandatory for success; no longer an aspiration to work towards. Sectors such as property that are reliant on physical interaction must adapt at lightening speed to survive. This means the competition between service providers who crop up along the purchase to completion chain is arguably skewed by those who already had their digital ducks in a row.”
"One of the ways to mitigate this effect is to make sure you stay ahead of each step and instruct the best you can find in conveyancing and moving. The use of a concierge app such as Moveable can speed up each process and make it easier to complete each step in the right order, ensuring nothing is left out to hold up the process."
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