The UK property market enjoyed a mini boom in the second half of 2020. The question on everybody’s lips is: “Why is this, and will it continue in 2021?”
The property market in England is fully open in its entirety, meaning that Benwell Daykin is allowed to conduct in-person valuations and house viewings, meaning buyers are able to move home despite the ‘lockdown’ measures currently in place. Since the middle of 2020, the UK property market has been on the rise which has seen transaction numbers rise significantly. Provisional data from HM Revenue and Customs (HMRC) shows that 115,190 property sales went through in November 2020, up 19% year-on-year.
What impact has COVID-19 had on house prices and how has the stamp duty holiday affected them?
Provisional figures released are detailing the impact coronavirus has had on house prices, but with the ongoing stamp duty holiday and the prospect of continuing lockdown measures, the figures could continue to fluctuate. The Land Registry’s UK House Price Index’s latest available figures for November state that the price of a property in the UK increased by 1.2% month-on-month and 7.6% year-on-year in November.
It is undeniable that the Stamp duty holiday played a major impact in the market’s growth throughout the last quarter of 2020 and into 2021. However, as this comes to an end another question on everyone’s lips is: “Will the chancellor extend this or not?” Home movers will be keen for the extension as the opportunity to save thousands aided many as they purchased their dream homes.
What do the major property portals think will happen?
According to a recent Which? article “Rightmove forecasts that house prices will rise by 4% in 2021. It predicts a lull in the second quarter of the year once the stamp duty cut ends, but says this won’t be ‘make or break”.
Benwell Daykin attended a record number of valuations in January and – with no sign of interest rates going up – the Ruddington based estate agent feels that 2021 will be another good year to sell your home!