2020 saw multiple records broken in the property market, with house prices reaching a record high, but what can we expect for 2021? Rightmove have made their predictions, based on their data collected as the biggest home-hunting site in the UK, on what could happen to property prices this year.
Here’s an overview of what they had to say;
- The surge in average asking prices seen at the end of 2020 will continue, though slower than we’ve seen, with a predicted 4% national average house price growth in 2021 . This is lower than the 6.6% growth seen in 2020, but probably more sustainable.
- The end of the Land Transaction Tax Holiday in Wales will likely see the second quarter of the year slowing down. With cheap mortgage rates still available for some, there is room for some modest price growth despite the loss of tax saving. We may see buyers reducing offers somewhat to compensate for the higher tax fees, though with LTT only applicable on property value over £250,000, and first time buyers remaining largely exempt, the impact may in fact be minimal.
Last year taught us that anything can happen, but also how resilient the UK property market has proven itself to be. Without a crystal ball it’s impossible to know for sure, but we can be confident that the market isn’t slowing down any time soon.
Source: Rightmove Property News
Posted on: 19 January 2021