If there is one thing we have all learnt from 2020, it is not to predict the future! With Covid19 affecting countries and people across the globe, one industry that is bracing themselves for possible long term repercussions, is the property market.
Top economists have suggested that by the end of 2020, house prices will start to fall, with some suggesting this could be by up to 13.8% lower than the previous year.
By signing up with companies such as https://www.samconveyancing.co.uk/news/housing-market-report, house buyers can stay up to date with the latest information on the housing market and calculate the best time to either get on the property ladder, or put their home up for sale.
However, so far the housing market is keeping ahead of the trend and last month saw the biggest monthly rise in prices in almost 16 years. There are many reasons for why this happened and experts have warned consumers not to read too much into it. Incentives introduced to support the industry appear to have worked, including the temporary changes to the stamp duty rules.
Previously stamp duty was paid on all property sold at prices over £125,000, but in July, the Chancellor Rishi Sunak, changed this rule to properties sold at prices over £500,000 and said the new rule would remain in place until March 2021. In addition to this, there was a backlog resulting from March and April when the country was in full lockdown, making the first few months after restrictions eased, particularly busy.
For first time buyers looking to get on the property ladder, while the relaxing of the stamp duty will undoubtedly help, the average deposit required to secure a property has risen by a quarter to almost £50,000. However, the Government is offering other schemes to encourage home ownership
Other influences which have helped the housing market stay buoyant are a ban on repossessions and the Government’s furlough scheme. However, when this ends in October, there is concern over a potential rise in unemployment and the negative impact this will have on the property market.
Official data from mortgage lenders has helped predict the future of the housing market, but also official figures from the government which are based on real statistics and it isn’t all bad news, forecasters have also predicted recovery will start in 2022.