Housing market 2021
As we near the end of 2020, here’s a look at the expectations of the housing market 2021. The UK housing market has been on fire this year with record-low mortgage rates. And because of these low rates, a sudden wave of relocations have been made possible by remote working. Although we continue to witness house prices pushing new boundaries as buyer demand continues to surge.
Will the housing market crash in 2021?
As the post-lockdown boom continues, the UK housing market expects 100,000 extra home sales in early 2021. This property rebound is predicted to continue as buyers rush to complete before stamp duty holiday ends in March. The number of new sales being agreed remains 38% higher than it was a year ago, according to property website Zoopla. It predicts the housing market will be the busiest before Christmas than it has been for over a decade. It’s been a rollercoaster year for the housing market which looks to end on a strong note. However, experts are giving very conflicting opinions on predictions for 2021. Some are saying it’s inevitable there will be crash, whereas Rightmove’s latest house price index predicts a 4% rise.
House price discounts for key workers
You may have heard about the government pledge to secure a 30 per cent discount on selected housing for first-time buyers. Priority has been given to key workers such as nurses, teachers, and firefighters. The First Homes scheme will only apply to homes in new developments. This is about 1,500 initially and to 25% of newly build affordable housing in the future. The discount will then be passed to subsequent buyers, to prevent attempt at profiteering from the scheme.
Unemployment in the UK
Although history has shown us that as unemployment increases, house prices dip, the furlough scheme has been the exception. It’s enabled millions of workers to remain in employment despite the pandemic and as a result the housing market hasn’t been hit as expected. This is further good news for the future of the housing market, however we are yet to see the negative impact furlough will have on the housing market 2021.
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