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.

Housing Market Strongest since 2004

The Housing Market is at its strongest since 2004!

House prices rose 7.6% year on year in November according to the latest data released by the Halifax Index. This brings the average house price in the UK up to a staggering £253,243.
Whilst the Stamp Duty Holiday has definitely contributed to the rise, the rise in prices has outstripped the savings in many areas and the housing market is currently at its strongest since 2004.
Unsurprisingly, the biggest growth in house prices this year was after the initial lockdown in the spring where prices rose by a huge 6.5% in the 6 months following it, equivalent to £15,000.
Mortgage approval rates are also at a 13 year high, and buyers have been snapping up properties particularly in rural locations with more space.
So far, the housing market has proved itself to be resilient and strong through the pandemic.

 

 

The Housing Market is at its strongest since 2004! HMO Management Agency
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Property Transactions up 8%!

Property Transactions up 8%!

According to data published by HMRC yesterday (24.11.20), UK monthly property transactions are up by 8.1% year-on-year in October, as well as being 9% higher than September’s figures. There were 105,630 transactions in October 2020, which is over 8% higher than October 2019 and is diminishing fears that the housing boom was slowing.

Residential property transactions have increased each month since the first government lockdown in April and May, showing buyer confidence is returning. HMRC believe the rise was impacted by purchases going through that may have stalled since March as well as the Stamp Duty Holiday meaning purchasers can save tens of thousands of pounds on their purchase.

Industry experts have echoed HMRC’s comment’s and added the demand for homes has remained high since the reopening of the Housing Market. Whilst the Stamp Duty holiday has contributed to the boom, buyers need to be quick if they wish to take advantage as it is due to end on 31st March 2020.

Property Transactions up 8%! HMO Management Agency