< Back to blog

House prices set to rise in 2021 Posted On 16 December 2020

Rightmove’s latest house price index shows a property price increase next year

 

Residential property prices are set to increase next year, according to Rightmove’s latest house price index. The property portal forecasts a 4% rise in 2021, which has surprised some who expected the market to slow after the expiry of the Stamp Duty Holiday on the 31st March.

 

However, Rightmove said that while the Stamp Duty Holiday ‘added extra momentum’. Buyer demand was already high before the holiday was announced. Currently, buyer demand is up 53% year-on-year, and with the lockdown effect, it seems people will be moving in record numbers in 2021 regardless.

 

The lockdown effect is still being felt in the property market, with a surge in demand for properties in rural areas and with additional garden space. The pent-up demand from the first lockdown is still being felt too. Some 130,000 sales were agreed last month, up by 44% on the same period in 2019.

 

Tim Bannister, Rightmove’s Director of Property Data said, “Our 2021 forecast of a 4% price rise is more conservative than the unsustainable 6.6% national average seen this year.

 

“There’s likely to be a lull in quarter two unless the stamp duty holiday is extended, but for many buyers its removal will not be make or break, though may lead them to reduce their offers to a degree to compensate for the higher tax, and indeed many sellers may be prepared to help to mitigate their buyer’s financial loss.

 

“First-time buyers will remain largely exempt, so in most cases will be no worse off. Interest rates remain at near-record lows, and we expect greater availability of low-deposit mortgages at competitive rates next year.”

 

To get more information and for a FREE no-obligation valuation of your property, please contact us today.

< Back to blog

Connect with us

Recent Posts

FA Cup semi-Final Preview

Four teams battle it out to reach the 2021 FA Cup Final   Man City v Chelsea. Saturday, 5.30 pm Pep Guardiola’s Man City go into this game knowing they are closing in on an unprecedented quadruple, while Thomas Tuchel’s Chelsea have found form under their new manager at the business end of the season. …

Read more...

Picnic wine to enjoy this Spring and Summer

Meeting friends and family outside is even better with a good quality vino   With up to six people able to meet in back gardens and outdoors, and the weather slowly warming up, it’s a perfect time for picnics and BBQs at home (in your back garden) and out and about. So let’s have a …

Read more...

Average property price at record levels

The average price of a UK home is at record high levels   In March, the average price of a UK home jumped a further 1.1% to a record high of £254,606 as government measures to support the market continue to drive interest from buyers. The data from Halifax shows that since March 2020, house …

Read more...

Inspect the gadgets

Stand out from the crowd with the latest kitchen aids   It is an inescapable fact that the kitchen is the heart of the home. More than just a collection of units, it is the place where memories are forged and culinary disasters are celebrated as much as the triumphs; It is also a place …

Read more...

Lockdown lifted

Stage two of the lifting of lockdown starts today, but what is opening?   As part of the ‘Roadmap’ out of lockdown, today, the 12th of April, has been a day business owners across the country have been waiting for. Not just business owners though with gyms, outside pubs and restaurants, libraries, hairdressers and beauty …

Read more...