We’ve probably spent more time at home than we have ever done in 2020. Enough time to determine that our current properties don’t fit our lifestyle or where we want to be. Housing priorities have therefore been pushed right to the top of people’s life agendas, a fact that Rightmove believe will continue into 2021.
Their house price index report, released in December, shows that buyer demand was already high before the stamp duty holiday was introduced in July and has resulted in a 6.6% increase (10.6% for properties in the North West) on house prices compared to 2019.
Rightmove forecasts a robust 4% average price growth on UK house prices for 2021 as housing needs and a ‘fresh-start mentality’ suggest the market will continue to outperform. They warn that sales may slow down once the stamp duty holiday is over, but believe that the cheap mortgages available for some will still offer the opportunity for growth on top of this year's 6.6% rise and the loss of the tax saving.
The report also highlighted the reduction in the number of properties coming to market, being down by 0.6% on the same period in 2019. With 53% more prospective buyers contacting estate agents than at this time a year ago this would also lend weight to the report's modest price increase for 2021 as demand outstrips supply.
Tim Bannister, Rightmove’s Director of Property Data comments, ‘The uncertainties of the pandemic have been around for almost a year and concerns regarding Brexit even longer and still demand has increased month on month, proving that movers are willing and able to act on their new or existing housing priorities.’
Are you considering making some big changes in the New Year? Why not arrange a No Obligation market appraisal with one of our local experts at Poole Townsend to get the ball rolling with your ‘New Year, New Home’ aspirations.