UK property boom slated to continue into the new year

 

With the stamp duty holiday deadline looming at the end of March, the UK property market is likely to see strong activity continue into 2021.

In recent months, the housing market has remained busy, despite the market typically facing a slowdown this time of year. The stamp duty holiday, which was put in place in July, has boosted the housing market. This tax holiday has become a major factor in high demand and property price growth.

The UK property market continues to see record-breaking figures of prospective buyers and transaction levels. And buying and selling is likely to continue at strong levels into the new year.

Demand hitting record heights

October is usually when the market starts to slow down for the year. However, that didn’t happen this year. NAEA Propertymark’s October Housing Market Report revealed the number of prospective buyers reached the highest ever recorded for the month of October.

Additionally, the number of sales agreed hit the highest recorded number for that month since 2006. Mark Hayward, chief executive of NAEA Propertymark, says the property market boom has been “hugely beneficial” for the sector.

“Typically, we see the property market slow down as we approach the festive period and people put their sale on hold until the New Year. However, the pressure of completing sales ahead of the Stamp Duty holiday ending means that we have seen the number of potential buyers and the number of sales completed remains unusually high for this time of year.”

House prices on the rise

With demand and transaction levels hitting record highs, house prices have also been increasing. Data from Zoopla reveals house price growth is at a three-year high with prices jumping 3.5% in October. That amounts to a 1.2% rise from last year.

House prices are slated to increase even further in the short term as the property boom continues. With strong buying and selling numbers, Zoopla forecasts price inflation to hit 4% by the end of 2020.

It’s worth noting that house prices are strong across the board. All cities monitored by Zoopla’s House Price Index recorded higher growth rates than a year ago. This shows the UK property market as a whole is experiencing a boom.

The dash to beat the stamp duty holiday deadline

Even though the housing market typically faces a seasonal slowdown this time of year, there has been sustained buyer appetite. The UK property market is set to see its busiest December in over a decade, according to Zoopla. And this demand will continue into January as buyers attempt to beat the stamp duty holiday deadline on 31st March.

The property sales pipeline is 50% bigger than this time last year. Zoopla expects 2020 to end with 1.1m home transactions. On top of that, buyer appetite will lead to 100,000 additional sales completing before the end of March.

Richard Donnell, director of research and insight at Zoopla, states: “It has been a rollercoaster year for the housing market which is ending on a strong note, with demand and sales agreed still more than 30% higher than this time last year.

“It has been a remarkable turnaround and completed sales look set to fall just 6% short of last year despite a two-month closure of the market in England.”

With the UK property market set to finish 2020 strongly, despite a challenging year due to COVID-19, this momentum will roll over into the new year. Housing demand will likely slow down later in 2021 but not until after the stamp duty holiday deadline.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

UK property boom slated to continue into the new year

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.