Vaccine Injects Confidence in the Sector

The rollout of the vaccine began in the UK last week. Prioritising, healthcare workers, those living in care homes and the elderly. The results are looking promising with no serious side effects reported during Pfizer’s clinical trials. If the rollout is successful, the market can expect to see an increase in productivity. This will continue beyond March and the stamp duty holiday deadline.

The stamp duty holiday ends on 31 March. The surge in sales will steady as the sector heads into April 2021. Amid the pandemic, the vaccinations will help sustain the market beyond this deadline.

Savills surveyed over 1300 prospective buyers and sellers during the second UK lockdown. From the respondents, 13% said a vaccine would increase their commitment to moving in the next 3 months. For 67% of participants, the lockdown had no impact on their plans to move in the next year. In addition, 17% said it made them even more committed to relocating. Following the announcement of the vaccine, Lloyds Bank Recovery Tracker reported 43% of real estate firms predicted an increase in output, in the coming year. This figure is up from a third in October.

There has been a significant rise in the number of people looking to relocate and invest in properties. There are a number of factors behind this, including low-level interest rates. The average interest rate on a 30-year fixed mortgage fell to a record low of 2.88% in August. This marks the lowest level in over 50 years. As a result, a higher number of people are securing mortgages.