From an industry outsider’s perspective, the effect of the stamp duty holiday seems to have been to increase transaction volumes (sometimes to frenzied levels) while driving up prices, especially in high-demand rural areas and market towns. The average national house price increased by 13% in the year to June 2021, reaching a high of £245,432, according to Nationwide’s house price index. Reports of conveyancers working all hours to complete property transactions also speaks of an industry with soaring demand.
The number of residential property transactions in June 2021 was a whopping 219% higher than June 2020 and 74% higher than May 2021, according to data from HMRC, as people hurried to meet the stamp duty deadline. After the fever pitch housing market we’ve had for a year now, it’s reasonable to expect market activity to slow somewhat in the coming months. So what can property market participants – from agents through to portals and product providers – do to diversify their revenues and increase their number of customer touchpoints as the market slowly returns to earth?
Property firms need to build on the momentum created by the stamp duty holiday and maintain a close connection with customers and potential buyers. It’s also worth keeping an eye on the impact of upcoming changes in government support packages (especially the end of furlough) which could dampen consumer demand for property.
Exploring new revenue streams should be at the forefront of property professionals’ minds. Forming corporate partnerships with trusted brands can help these businesses adapt and thrive, and financial services is a natural bedfellow for property firms that are looking to expand their offerings.
Nearly 200,000 property transactions took place in June 2021 alone, according to HMRC. Buildings and contents insurance may be top of mind for many, but financial protection in the form of life insurance is vital for customers who have increased their mortgage borrowings.
The purchase of a new home – or indeed a remortgage – and a review of life insurance should go hand in hand. Should the worst happen, homeowners need to have the right protection in place so as not to leave their loved ones exposed. Financial resilience has become a key theme for many families since the start of the pandemic, and many will be re-examining their priorities and what’s important to them as a result. For homeowners, many of those conversations and considerations will be around future financial security, how they can protect their families and how best to prepare for the unexpected.
Partnering with a reputable financial services provider is a strategically sound way to diversify and start offering financial services and products to customers. However, it’s worth remembering that a sole provider will limit product choice for your customers. By comparison, partnering with an independent broker will enable access to a fuller range of available products for customers, potentially meeting a greater range of needs and giving customers more choice as they plan for their futures.
