UK real estate: At the beginning of the new year, people have made a series of predictions for the real estate market in 2021, but the data released today shows that the momentum we have seen in the past few months may be slowing.
According to the latest report from Halifax, one of the UK’s largest mortgage lenders, house price growth slowed significantly between November and December, which shows that as we approach the end of the current stamp duty holiday, buyers Demand began to decrease, while price increases have also cooled gradually.
Therefore, although Russell pointed out that the average price of real estate in the UK has hardly changed throughout the month, house prices “still reached a record high of £253,374.”
“After a strong start, the first half of the year was mainly due to the movement restrictions caused by COVID-19. As the market actually stagnated, prices subsequently fell by 0.5% in the middle of the year.
Read More: Brexit property: Britons who own Spanish holiday homes deal with “unexpected tax impact.”
“Compared with December 2019, all of this has increased the average price at the end of 2020 by approximately 6%, which is particularly strong considering the expected impact of the pandemic earlier this year.
“Although the annual inflation rate of house prices has indeed fallen from 7.6% in November and is at the lowest level since August, it should be noted that this also reflects the political uncertainty at the time when house prices are particularly strong at the end of 2019. Began to ease.”
Mark Harris, CEO of SPF Private Clients, a mortgage broker, reflected: “Given that the real estate market was forced to close last year, we have two months. Compared with December 2019, the price has risen by six at the end of the year. %, this is really shocking.”
“Despite some restrictions on high loan value products, the availability of very cheap mortgages has contributed to a surge in transaction volume.
“As far as this year is concerned, the good news is that 90% of products have reappeared, and HSBC is back in the market this week.”
Mark suggested: “COVID-19 allows people to focus on their housing requirements and what is important to them and their families. As offices become less urgent, proximity to subway or train stations is affecting relocation decisions, and the desire for more space and gardens.”
Jeremy Leaf, the former chairman of RICS housing, added: “It’s no surprise that the pace of house price increases started to slow in December. This is actually what we saw in the office as further lock-in restrictions and seasonal disturbances dispersed housing movers.”
“However, we have recorded very few failed sales, except when chain stores are interrupted or renegotiated prices due to reduced business activities.
“Therefore, looking forward to the future, we expect that this model will repeat itself and most transactions will be completed. Subsequently, as the launch of vaccines is expected to accelerate, a greater balance between supply and demand will be achieved.”
Of course, because the current lock-in period coincides with the three busiest months of housing market activity in the year, some people believe that we may see changes in buyer mood and behavior in the process. 2021.
Tom Bill, the head of UK residential research at Knight Frank, a real estate agent, said: “Although we expect prices to be flat in 2021, they may fall in the second quarter.
“This is not only due to the end of the stamp duty holiday, but the fact that the third nationwide lockdown means that some sellers may postpone it until the spring.
“Any excess supply will put downward pressure on prices, even if the vaccine has begun to return to normal after its launch.”
What would we be able to expect in the next three months? Russell Galley believes that the recent 13-year high of mortgage approvals augurs well for buyer activity. “There may be enough remaining power in the market to maintain prices until the stamp duty holiday deadline and help purchases. Reduction. At the end of March.”
However, there is a caveat. Russell concluded: “Because the pace of the UK’s economic recovery is expected to be restricted by the new national blockade, and the unemployment rate is generally expected to rise in the coming months, there is still downward pressure on housing prices as we pass through 2021.”