Homebuyers breathed a sigh of relief in January as the property market remained open during lockdown, with hundreds of thousands of transactions rushing to complete by 31 March. On this day, the Stamp Duty tax break, which cuts Stamp Duty to 0% on properties under £500,000, would have come to an end.
The rapid pace of market recovery in the second half of 2020 has shocked even the experts, with a Savills’ autumnal spotlight on the market referring to a ‘stronger than anticipated rebound.’ Furthermore, HMRC data revealed a massive 19.3% year-on-year increase in transactions in November last year, while mortgage approvals rose to a 13-year-high in October.
What lies ahead?
Although the media was awash with dire predictions of a house price crash early in the pandemic, nothing could be further from the truth. In fact, demand spiked when the property market reopened in May 2020, as buyers across the UK reassessed their current homes, locations and requirements.
This, combined with the incentive of thousands saved on Stamp Duty, were contributing factors of the increase in the average UK house price by 6% last year.
While the first quarter of the year is set to be hugely busy, with well over 600,000 sales in the pipeline (most of which will be aiming to complete by 31 March), ongoing economic uncertainty and the potential job losses that could follow the end of the furlough scheme in April, are likely to render this momentum unsustainable in the long run.
This pace is not believed to be sustainable throughout 2021, with some lenders predicting a flatter market, although modest growth is still predicted by some.
A ‘less straightforward’ year
The outlook for the 2021 residential property market is extremely uncertain. Rightmove have recorded their busiest ever start to a new year, with visits to their website up 30% compared to the same time last year.
Savills cautions that the outlook for 2021 will be dictated by the Stamp Duty holiday, the economic situation, and the rollout of the vaccine programme, with expectations that net price growth will be at or close to zero. Knight Frank is now predicting that UK prices will be flat over the course of the year, having previously predicted an increase of 1%.
Here whatever happens
As Knight Frank states, ‘short-term forecasting during an event as unprecedented as a global pandemic is not a straightforward exercise.’ But whatever happens this year, we’ll be on hand with expert guidance and advice, covering the latest property news and ensuring that you’re always up to date with what’s going on in the market.
Your home may be repossessed if you do not keep up repayments on your mortgage
Catch up on our other blog posts:
Are you protected from canine chaos?
If you have a dog, you’ll know that they can be cute, loving… and a whole heap of trouble! Aviva1 recently backed this up when it revealed some of the company’s more noteworthy pet-related claims. From the pooch who turned on a tap and flooded his owners’...
Save by living just outside hotspots
By choosing to live just outside highly sought-after locations, analysis has shown that homebuyers could benefit from savings of up to 55%1, without forsaking their preferred location. Average savings come in at around 34% when locating five or ten minutes from a...
The money taboo – it’s good to talk it out
Are you worried about your finances? If so, you’re certainly not alone. According to a recent survey, 90% of households are worried about rising prices1. Financial worries can cause a great deal of stress and anxiety. In fact, nearly one in five people say they have...
Wellbeing benefits of income protection
Income protection insurance can be a cost-effective way of protecting yourself financially if you are unable to work due to illness or injury. What many people don’t realise is that taking out an income protection policy can have benefits beyond the financial....
Plan to avoid home buying stress
Job interview, driving test, family life… the list of life’s stresses is, unfortunately, long and varied. New research has revealed, however, that buying a home comes out on top. Can’t Buy Me Stress 37% of recent UK homebuyers said that buying a house was one...
Seeing protection in a new light
Nobody wants to think something bad happening to them. Perhaps it’s why so many people shy away from protection insurance – after all, it’s all too easy to think ‘it’ll never happen to me’. Unfortunately, ‘it’ can and does happen, whether ‘it’ be injury,...
Back to normal? Property update
Amid the backdrop of war in Ukraine and the spiralling cost of living, unpredictability is at the forefront of many people’s lives right now. The outlook for the housing and mortgage markets is no less uncertain. Taking a step back, however, it is possible to...
First-time buyers nearing forty
The average prospective buyer predicts they will be 37 years old by the time they finally step on the property ladder, up from 32 years old only two years ago. The survey by First Direct also found that 86% of prospective first-time buyers considered the...
Navigating the UK Equity Release market: What to consider.
Navigating the UK equity release market can be daunting, as there are a variety of different products and providers to choose from. However, with a bit of research and understanding of what to consider, you can make an informed decision that will suit your needs. One...
Be ready to buy in four steps
The home-buying process can be complex for the first-time buyer (FTB). So much so that finding the right home can start to seem like the least of your concerns! Here are some top tips to prepare financially before you kick off your search: Know what you need. Before...
(Your home may be repossessed if you do not keep up repayments on your mortgage)
We charge a fee for arranging and advising you on the mortgage. The fee will be dependent on your circumstances but will not exceed £499. (Our typical fee is £299.)
For Lifetime Mortgages/Equity Release the fee will be £799.

Our mission is to provide honest mortgage advice, whilst helping you save money.
Get in contact
Flexible appointments
Or call —02380224925