With Coronavirus (COVID-19) causing a trail of destruction in 2020, we look at the predicted impact it will have on the housing market.
Since re-opening after the first lockdown, the UK property market has seen a resurgence over the past few months-driven by the government temporarily cutting stamp duty. With buyers saving up to £15,000 in tax if they move before April 2021 the market is projected to grow by 6% by the end of the year.
During this period UK house prices rose by 3.5% to average £223,500 in October 2020, yet this is set to slow down to 1% by the end of December 2020.
This rise comes with a pinch of salt as the national economy faces the prospect of a double-dip recession. The country now faces a strict tiered approach to lockdown, seeing areas of the country under massive economic strain. Which in turn is driving up the unemployment rate.
Looking ahead to 2021, we must take factors such as Brexit, COVID-19 vaccination and unemployment levels into consideration when predicting trends.
Heading into 2021 a last-minute surge of buyers is expected in January, as they try to beat the deadline for the stamp duty.
Oxford Economics predicts the UK economy should see an 8.5% growth in 2021. Unemployment should begin to “fall progressively” over the following three quarters of the year. Thus, limiting the potential for house prices to fall over the year.
Yet, if unemployment reaches an all-time high, the Office for Budget Responsibility (OBR) predicts house prices will fall by 22 per cent in 2021. This will be followed by a period during which prices remain around 10 per cent below the trend anticipated in March this year.
Looking ahead to the end of 2021, the Hamptons International Housing Market Forecasts (HIHMF) forecast, housing prices will remain flat if the availability of mortgage finance returns to near pre-COVID levels. Making now the optimal time to sell your property.
Fast Sale Now and the Corona Crisis:
Fast Sale Now, are the perfect buyer and aim to complete our property transactions in as little as 7 days.
We are a team of property experts with over 30 years of experience in the industry and have dealt with all kinds of property sales.
Please get in touch with us now for a free no-obligation consultation, which will usually result in a prompt viewing of your property and an offer within 24 hours.
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