The recent pandemic caused great change in nearly every sector of life. The situations each individual and business face are uncertain and confusing, leaving everyone scrambling to overcome their hurdles. Deflation has been a common trend amongst many different industries. In addition, Brexit has evoked feelings of unpredictability, as change can often be quite scary. However, within the last several months of 2020, the UK housing market has bounced back and experts predict that 2021 will be a strong year overall.
While the amount of property transactions has been at an all-time high, sales activity and the growth in the price of houses are expected to be more subdued in 2021. Experts forecast between 1% and 4% national average growth in house prices throughout the year. For 2022 and future years, housing prices are predicted to rise even more.
It is unlikely for Brexit to have much of a short-term impact on the UK housing market. However, the effects of the COVID-19 pandemic may play a small role. Due to the pandemic, job uncertainty is common and that puts some pressure on the property market. Since the introduction of the COVID-19 vaccine, more people are feeling confident about the return to "normalcy" within the year. This could help to boost the overall economy and the housing market.
After spending a majority of 2020 at home, there has been a high demand for moving homes as people are reassessing their living situations and priorities. In general, many people are looking for homes with more space and storage opportunities, as well as a location that offers optimal internet connectivity and an adequate work space.
In conjunction, mortgage rates are expected to remain at low levels, making 2021 a very attractive time to purchase a property. Banks are gaining more confidence in the economy and offering more mortgage products as a result.
Despite the uncertainty ahead, the UK housing market is resilient and the time to buy a house is now! Lower mortgage rates, subdued housing prices, and low interest rates are expected throughout the year. Have you considered buying a home in 2021? Count on Everest Estates for assistance! We offer property sales and letting services to clients throughout the Essex and East London areas. Contact us today to get started!