Housing Market 2021 – What Comes Next

29th January 2021 posted in Sellers Buyers

Even with another national lockdown in place, the housing market is open, and we are here to help you.

At Hunters Stoke Newington, we appreciate many people are keen to make a move this year, and we are here to help you. It might be the latest lockdown has caused you to re-evaluate your home, and what would help you feel happier. If you feel it is time for a change, get in touch, and we will do whatever we can to assist you move forward.

Amazingly, the housing market remains in good form, which has surprised many people given the challenges it faced in 2020.

In spring, there was a six-week period where the market was all but shut down. Of course, when the market re-opened in May, the level of built-up demand ensured the housing market was extremely busy.

At this point, many industry experts predicted there would be a slowdown. However, the stamp duty holiday invigorated the market, and the year ended in a strong manner.

Some industry experts believe the first few months of 2021 will continue in the same manner when it comes to the housing market. However, looking long-term, it is natural that there are some concerns as to how the market will fare.

Rightmove tips increase in house prices

Rightmove predicts a 4% average house price growth in 2021 across the UK. The leading property portals states that in December 2020, sales were 53% higher than they were in December 2019. This is the case, even though many deals taking place at the time will not conclude before the stamp duty holiday ends.

Tim Bannister is the Rightmove’s Director of Property Data, and he said; “Our 2021 forecast of a 4.0 per cent price rise is more conservative than the unsustainable 6.6 per cent national average seen this year. There’s likely to be a lull in quarter two unless the stamp duty holiday is extended, but for many buyers its removal will not be make or break, though may lead them to reduce their offers to a degree to compensate for the higher tax, and indeed many sellers may be prepared to help to mitigate their buyer’s financial loss.”

Tim Bannister continued by saying; “First-time buyers will remain largely exempt, so in most cases will be no worse off. The maximum savings of £2,450 in Wales or £2,100 in Scotland are considerably less decisive than the £15,000 available in England for a house costing £500,000 or more, which does however only apply to a small part of the market.”

In November 2020, Rightmove said there were 650,000 sales agreed and in the pipeline. In December 2020, Rightmove states that there were still 650,000 sales agreed, and in the pipeline.

If you need any help or guidance regarding property matters, please get in touch. As your local housing market specialists, we will do what we can to ensure you make your next house move in style. Contact Hunters Stoke Newington today for all your housing and letting needs.