Demand from homebuyers for conveyancing quotes was 101% higher at the end of March 2021 than the average for the same date during the previous four years (2017 – 2020) according to data from reallymoving, the comparison site for home movers.

Conveyancing quote volumes began to accelerate around Budget Day (3 March) when the Chancellor announced an extension to the existing Stamp Duty holiday and a tapering of the tax saving to the autumn, as well as news of a mortgage guarantee scheme for 95% loans. By mid-March quote volumes had reached 51% higher than the average and continued to accelerate to reach 101% higher by the end of the month (see graph.

First Time Buyers leading the charge

Despite them benefitting least from the Stamp Duty holiday extension, the volume of First Time Buyers seeking conveyancing quotes has also accelerated sharply. Demand was 111% higher at the end of March than the average for the same date during the previous four years (2017 – 2020).

A survey by Canada Life in November 2020 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. They will also be encouraged by several high street lenders signing up to the government’s new mortgage guarantee scheme, meaning a greater choice of high loan to value mortgages will soon be available – and fears of a further surge in prices prompted by the stamp duty holiday extension.

Rob Houghton, CEO of reallymoving said: “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% 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. 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.”

Graph: Conveyancing quotes reached 101% of average levels in March.