4% House Price Growth Expected in 2021
The housing market’s resurgence may well continue into next year after online estate agents Rightmove, forecasts a very promising 4% growth in house prices in 2021.
The property market has experienced a terrific comeback since restrictions were lifted earlier in the year. Halifax reported record growth in UK average house prices after they exceeded £250k for the first time in history back in October. Lenders have also approved the greatest number of new mortgages since 2007 according to The Bank Of England’s Money and Credit report.
Rightmove’s latest forecast comes at a time when many were anticipating a sudden drop-off in house price growth in 2021, fuelled predominately by the looming end of Stamp Duty Holiday on the 31st March 2021.
However, despite the end of the tax break now just a matter of months away and the potential for rising levels of unemployment once the government’s job retention scheme draws to a close, Rightmove sees 2021 panning out strongly for UK property.
The estate agent admits that the Stamp Duty Holiday has unquestionably added extra momentum to the housing market, but points out that buyer demand was already high prior to its introduction in July and remains remarkably resilient at 53% higher than the same time a year ago.
There are also growing expectations that the property market will introduce new initiatives to further galvanise it’s resilience next year.
“Interest rates remain at near-record lows and we expect greater availability of low-deposit mortgages at competitive rates next year,” said Rightmove’s Tim Bannister.
The property data expert goes on to suggest that next year will most likely exceed the gloomy outlook many had first predicted.
“2021 has a lot of variables, and so it is not an easy one to call, but with Rightmove’s unique leading indicators of buyer and seller behaviour we are confident that the housing market will continue to outperform general expectations next year as it did this”.
At The House Crowd we echo these same sentiments and believe there is an abundance of demand left in the property market’s tank to fuel a buoyant and prosperous 2021 for us and our property-backed peer-to-peer loans.
In addition to this, we are now also seeing a shift in buyer behaviour as remote-working forces many to re-access their work and lifestyle environments. With this in mind, the North West continues to become increasingly attractive and it is where we shall continue our focus for providing our investors with some of the best property-backed P2P investing opportunities in 2021.