While 2020 may be over, the implications of one of the most turbulent years in history are still being felt. But what will the repercussions of Brexit and the COVID-19 pandemic, as well as the vaccine rollouts be for the property industry? Here, we look at predictions for the housing market in 2021.
2020: A surprisingly good year for the housing market
Despite the global pandemic, 2020 was actually a successful year for the housing market. The industry remained somewhat unaffected and in fact, flourished in light of the pandemic and lockdowns, with the stamp duty initiative especially giving a much-needed boost.
Last year ended with the housing market in a strong position. According to Zoopla, demand in 2020 was 40% higher than in 2019 and although demand has slowed since summer, it remains 33% higher than last December, a previous peak following the general election.
Something that came out of the first lockdown was people’s desire to move out of cities into more rural locations, a trend which is set to continue as working from home becomes a more permanent arrangement for many of us.
What’s in store for 2021?
At the time of writing this article, the UK is back in a national lockdown. However, unlike in the first lockdown in March of last year, the property industry remains open, and house viewings are still permitted, as is moving into a new house. For this reason alone, the initial outlook for 2021 looks positive. While prices are expected to fall when the stamp duty holiday ends, ongoing demand for properties, particularly those in rural settings, is set to continue to increase.
What about Brexit?
Where Brexit is concerned, the property industry isn’t likely to feel any impact for some time yet. One positive is that now Brexit is done, more lenders are regaining confidence and an increasing number of mortgages are being brought back onto the market.
2021: A seller’s market
The nation is set to rush to make a property purchase before the stamp duty holiday ends in March. Added to that, as with 2020, this year demand is set to outweigh supply, meaning 2021 is set to be a seller’s market.
Due to an increase in demand for mortgages, lenders are becoming more selective of who they will borrow too. Therefore, it’s likely that the majority of buyers will need a larger deposit than they would if done in previous years.
With a positive outlook on the horizon for the sector, it’s highly likely 2021 is going to be an extremely busy year for estate agents, and that’s where Area can help.
Since 2016, we've been working with award-winning estate agencies, helping them to automate their lead generation and sales processes. With our software, you can convert single leads into multiple ones.
If you want to find out more about Area, our software and how we can help you and your team to increase sales, contact us for more information: https://www.usearea.com/contact-us.