New Year Property Market Update

The UK real estate market battled through the uncertainties of 2020, proving itself to be resilient through all the uncertainties the pandemic brought to the table. According to Nationwide Building society, house prices reached a 6 year high at the end of the year. This is due to pent up demand from the first lockdown in March as well as the stamp duty holiday beginning in June. All the uncertainties of last year are still very much present, so what are industry experts forecasting for 2021? 

Savills are predicting the mainstream market to remain flat with a 12.6% growth by 2024. In prime London, they are expecting a 4% growth in 2021, however by 2024 they are forecasting a 17.5% growth. In outer prime London they are predicting a 2% growth in 2021 and a 13.1% growth by 2024. 

Knight Frank have a similar forecast for the years leading to 2024, however they are more positive for 2021. In prime central London, they are predicting a 4% increase in prices and a 5% increase in prime outer London. They have added further commentary to justify their predictions – for example, “prices in prime central London have corrected by more than any other UK market over the last five years and we expect this to support growth in the medium term”. 

Halifax, Britain’s biggest mortgage lender, is predicting a dip in house prices of between 2% and 5% in 2021. They believe the negative economic impact of the corona virus would catch up to the property industry. According to the managing director of Halifax, “While the economy should begin to recover in 2021, helped by the roll-out of Covid vaccines, the jobs market will inevitably adjust to the changes in demand that are occurring, and unemployment is expected to rise. With the stamp duty holiday also due to expire in March – and lower levels of demand – housing market activity is likely to slow.”

It's important to note that predicting the exact outlooks of the property industry is impossible to do. Despite all the uncertainty, London will always remain a safe haven for so many and will continue to be one of the leading cities in the world, therefore real estate will always be in demand. There will always be good opportunities for buyers in London if they know what to look for.

If you are interested in purchasing or renting a home in London, please get in touch for a free consultation.