Demand from homebuyers for conveyancing quotes more than doubled by the end of March, according to data from comparison site Reallymoving.
The surge was prompted by chancellor Rishi Sunak’s 3 March Budget, which confirmed that the stamp duty holiday would be extended and announced the introduction of a £3.9bn government guarantee scheme for higher value loans, said the free quotes site.
Conveyancing quote volumes began to rise around the day of the Budget rising to 51 per cent higher by mid-March, and jumping to 101 per cent higher by 30 March, compared to a four-year average.
Demand from first-time buyers seeking conveyancing quotes was greatest, rising by 111 per cent higher by the end of March, despite the fact they will benefit least from the move on stamp duty.
Reallymoving pointed to a November survey by Canada Life which found that a third of adult children had moved back in with their parents during the pandemic, “providing many with a unique opportunity to save for a deposit”.
While many households have suffered financially during the pandemic, others have accumulated £125bn in excess savings, according to the Bank of England’s February Monetary Policy, equating to an average of £5,000 per household.
The comparison site adds that lockdown restrictions have prompted families to consider “whether a relocation may now be a viable option as some element of home working becomes the norm”.
Reallymoving chief executive Rob Houghton says: “It’s a strong seller’s market and demand is continuing to grow as we head further into spring, encouraged by the launch of government-backed 95 per cent loans and the stamp duty holiday extension.
“Many homebuyers have cash in the bank, money is cheap to borrow and, with the end of lockdown in sight, people are feeling optimistic about a future where they may be less tied to an office-based 9 to 5, giving them greater freedom to live where they choose.”
Houghton adds: “The housing market is usually a reliable indicator of consumer confidence and if this level of demand is anything to go by, the Chancellor may get the summer consumer spending spree he’s hoping for.”
In the Budget, the chancellor said that the stamp duty holiday would extend until the end of June, rather than winding up on 31 March.
Sunak said the tax relief will continue to apply to properties for sale up to a threshold of £500,000 until 30 June.
The nil rate band for stamp duty would subsequently drop to £250,000 until the end of September, returning to the standard cut off rate of £125,000 from 1 October.
The chancellor also announced a £3.9bn government guarantee scheme, covering loans for first-time buyers taking out 95 per cent mortgages on properties worth up to £600,000.
Several large lenders such as Barclays, HSBC, Lloyds, NatWest and Santander have signed up to the plan.
