Sales Market Update 2021
The Cotswold property market continues to perform well in 2021. We predict prices will continue to gently rise through the year, as demand remains and there are currently fewer properties available for sale than last year. We are measuring a reduction in available properties of about approx. 25% from January 2020, but please bear in mind we are now in the grips of a lockdown, compared to early 2020 - when we were not.
The increased migration from larger towns and cities to the Cotswolds remains, along with our traditional buyers i.e. locals upsizing and downsizing, first time buyers getting on the housing ladder, holiday let investors, buy to let investors, second home buyers, job relocations and lifestyle movers.
The Stamp Duty holiday is planned to end on 31st March, which has been much debated in our industry and in Parliament recently with many lobbying for its extension. I do not believe, if it does end as planned on 31st March or when it does, it will have an adverse impact on the Cotswold market. We all knew the end date when it was announced and we have been agreeing sales on the basis buyers are happy to proceed without the reduction, therefore mitigating the risk of a potential sale collapse for
our sellers. For the average house price in the Cotswolds this equates to 2.5% of the purchase price or £10,000. Yes, it is a lot of money, but in the scheme of the overall transaction it is a small margin. At £2,000,000 it is just 0.75% of the purchase price, would this stop you buying?
The most significant probable disrupter for 2021 is the rumoured overhaul of Capital Gains Tax; this could transform the market depending upon its implementation. The Cotswold property market has been and looks set to continue as a good investment, but most importantly we live in and enjoy a most beautiful part of our green and pleasant land. Particularly in current circumstances, I cannot see the significance of this changing.