2020 house prices

2020 House Prices Finished on a 6% High!

2020 was a roller coaster of a year when it came to house prices. It got off to a strong start and then slumped in the spring and summer as the first national lockdown took their toll on prices. This didn’t last long though and prices shot up again shortly afterwards.

The rise in house prices is due to a combination of several factors including the pent-up demand combined with people spending more time at home. Buyers craved a change with rural areas seeing the highest demand, more space to work and live were also high on priority lists. The ‘Stamp Duty Holiday’ announcement also prompted people to make the change and get moving. The holiday has seen people save thousands on house purchases and has propped the market up as people take advantage of massive savings.

Halifax has reported that prices were up 6% in December when compared to December 2019, with a slight increase from the month before.

December’s price increase brings us to the sixth consecutive month that prices have risen and finishes 2020 on a high that people may not have expected.  This has bought the average house price up to £253,374.

Mortgage approvals are also sitting at a 13-year high meaning more and more people are able to make that first or second step on the property ladder.

Options on what the 2021 market will hold remains divided, with the stamp duty holiday still in play until the end of March there are currently no signs of a slowdown.

2020 House Prices Finished on a 6% High! HMO Management Agency
House Prices 2021

Housing Prices to Rise 4% in 2021 say Rightmove

The UK’s biggest property portal ‘Rightmove’ have weighed in with their opinions on the 2021 Housing Market, predicting a 4% rise next year.

Experts have been divided on how the market will go in the coming 12 months, with 2020 seeing an incredible 7% rise in prices despite the coronavirus pandemic. The Stamp Duty Holiday has undoubtedly contributed to this rise, with prices and sales soaring as people make the most of the savings which can be as much as £15,000.

With the stamp duty holiday due to end in March 2021, buyers hopes of purchasing property within the deadline are dwindling quickly. However the property portal claims demand is still as strong, proving that the demand for new homes is there whether they receive the savings or not.

Rightmove claimed buyers will continue searching for new homes as the pandemic has unleased demand for more space and rural locations.

‘Pandemic related uncertainties have been around for nearly a year, and Brexit uncertainties for far longer, and record activity month after month has proved that movers are willing and able to act on their new or existing housing priorities,’ Rightmove said.

This is despite the stark warning by some property agents that the Stamp Duty Holiday must be extended to avoid a dramatic end to the housing demand. Coupled with Brexit and the end of the furlough scheme, the timing could be unfavourable.

However despite these hurdles, Rightmove, like many others, believe the 2021 housing market will far outperform expectations in a similar fashion to 2020. Some 650,000 are still in the process of changing hands so the beginning of the year is sure to start of on a strong footing.