The housing market ended the year almost undeterred from the pandemic and enters 2021 on positive foundations. Overall ‘sale agreed’ levels were only 2% below ‘normal’ levels observed in 2019 and house prices grew at sustainable rates in the region of 3.5%. Wealthier demographics played an important role in market activity with sales of 4 and 5+ beds increasing by 51% during the second half of the year compared to 2019 levels. Covid-19 has created a re-assessment of housing needs and it is noteworthy that prices of apartments fell by 4.0% last year compared to growth of 4.3% of houses.
The opening quarter of 2021 is likely to show continued buoyancy as a backlog of sales complete and new buyers rush to beat the stamp duty tax break by the end of March. The outlook for later this year remains more precarious and is dependent on a range of factors, not least the success and speed of the vaccine programme and the extent to which the wider economy can experience an uninterrupted recovery. Of encouragement, several lenders have re-introduced mortgage products for customers with a 10% deposit which will act as a stimulus for the first-time buyer segment of the market.
Read the full report belowHousingMarketTrends_Q4_2020_final
Last modified: 12/08/2022