The housing market has seen an impressive recovery in recent months after it was allowed to reopen following the initial lockdown period.
This is thought to be down to pent-up demand over the first strict few weeks of lockdown, as well as people trying to cash in on the stamp duty break.
But while Phil said the holiday is “certainly an incentive”, he hinted that it doesn’t necessarily mean it’s the right time to buy.
He added that it would also depend on what you feel is likely to happen to the economy further down the line, as it could be a risk to buy now if house prices do crash.
However, some of those working in the industry fear that fuelling demand with the temporary cut isn’t enough.
When the holiday was announced, Managing Director of Barrows and Forrester, James Forrester commented: “A bold move by the chancellor and one that will no doubt stoke the fires of homebuyer demand with such a large proportion of those transacting due to benefit.
“This shot in the arm should ensure top-line demand and price growth remain immune to any unseasonal downward trends and implementing this initiative from the get-go avoids any short-term decline in transactions.
“The only criticism is, perhaps, that the government has once again focussed on fuelling demand rather than addressing the more pressing issue of housing supply. While this will help boost house prices, it will do little to address the supply and demand imbalance and the problem of affordability that many are already facing.”
Money Saving Expert Martin Lewis also warned his fans in a recent newsletter that the stamp duty cut isn’t necessarily reason to believe now is the time to buy.
He urged buyers to “ensure the financials are sound, don’t overstretch yourself, pick a budget and stick to it”, and noted that while mortgages are cheap, you’ll need a bigger deposit to get one.