Despite the challenges of covid-19 lockdown rules and it’s significant impact on how the uk property market operates, property prices have seen a gradual rise during 2020. Is this likely to continue throughout 2021?
Many experts believe that property prices may slow down in 2021 for the following reasons:
- The Government’s furlough scheme is set to come to an end in March 2021. The unemployment rate is currently 4.9%. The Bank of England has stated that the unemployment rate could rise as high as 10% once the furlough scheme comes to an end. According to data from HMRC, 782k people have been made redundant since the first UK lockdown began in March 2020.
- The Stamp Duty tax holiday is also scheduled to come to an end at the end of March 2021. Having been the property market’s saving grace for much of 2020, the stamp duty holiday coming to end may result in lower demand for property purchases.
- The Brexit transition period will be coming to an end on 31st December 2020. Although a deal has now been agreed, the true impacts of the UK existing outside of the EU will no doubt have a significant impact on the UK economy. The extent of that impact will begin to unfold over the coming months.
UK house prices in 2021 will be heavily dependent on there being positive news around the covid-19 vaccine and its ability to handle the new strains of the virus that have been discovered. These will help to curb the estimated rise in unemployment and hopefully stabilize property prices.
If you are looking to buy, sell or rent a property, contact us to find out more specific details about how the above may affect you.
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