Experts might not have expected that the UK housing market would be as resilient as it has proved to be during the pandemic, but the latest boost in growth was not a surprise. It was expected that the upcoming end to the stamp duty holiday would see a rush of home buyers trying to beat the 31 March deadline. According to a recent report from Nationwide, property buyers created a new record high average house price.

In a trend that surprised many experts, homeowners began to move home during a pandemic. Lockdowns and restricted socializing due to the coronavirus caused individuals and families to take a hard look at where they were spending the majority of their time. It appeared, due to polls and studies, that what had been sufficient did not fill the new needs required of their home dwelling. Some needed a space for children to study and play, those working from home needed an area to organize, work, and meet online in private. Some yearned for a bigger kitchen area, a space to enjoy online streaming entertainment or family games, area for fitness, and a private and safe place to enjoy the outdoors.

The housing market has been surprising experts since the beginning of Brexit. No one would have thought that even in a global pandemic it would be resilient. Yet it has. It could be due to the low interest rates available from lenders and brokers. It could be the stamp duty holiday that has offered tax savings for home buyers. It could also be that the lockdowns and pandemic itself made people view their dwellings as inadequate for the new lifestyle forced upon individuals and families. The reasons are varied, and the result is a busy housing market.

When it comes to paying interest rates, other than business owners, perhaps the most likely impacted are homeowners and home buyers. Property is expensive. Buying a home could be the most expensive item ever purchased, other than perhaps another home. Interest rates matter because borrowing the funds to buy a home costs money. The interest rate on a mortgage is much like the interest rate on a credit card. The higher the interest rate, the more it is going to cost to borrow, and the more it is going to cost overall to pay down the debt.

The expected announcement for or against extending the stamp duty holiday is now days away. The tax discount was put into place last summer to bring more interest to the housing market, a critical sector of the UK economy. It worked as many first time buyers and home movers benefitted by the possible up to £15,000 savings. The higher demand has caused delays in the property buying process which is also impacted by work restrictions due to the pandemic, and it has pushed up house prices.

In July 2020, in an effort to boost what was expected to be a failing housing market in the midst of the pandemic, Chancellor Rishi Sunak offered a Stamp Duty holiday. There would be zero percent in tax for properties purchased below £500,000 until 31 March, 2021. It is believed that the opportunity to save money prompted the action of hopeful home buyers and home movers to put attention on the housing market. Now with the holiday due to end in weeks, there is a call to extend the benefit to secure the health of the housing market and the overall economy.