It’s no secret that last year the property market had a few bumps in the road, and while there could be more dips in the market for 2021, what do house price predictions look like for the future?
According to Savills, the UK property market forecast for 2021 and beyond predicts a 0% growth across all UK regions; however, the following years look much more promising. Forecasts for 2022 predict property prices to grow by up to 6% in the north-west of England, and by the year 2024, the average UK growth could reach a staggering 20.4%. This is considerably higher than previous predictions that only reached up to 15%, and again covered areas of the north of England and Scotland, which were significantly higher than property prices in London.
If you’re a property investor and looking to secure an investment this year, and if property prices do experience a downturn, then it may not be such a bad thing. Investors will be able to secure properties at a lower rate than normal but could still reap the rewards from capital growth further down the line. Experienced property investors will know to buy property when people new to the market will likely be more cautious, as they can get a great deal when purchasing their investment and on the return.
How will the Covid-19 vaccine affect property prices in 2021? When it comes to investing, nothing is a sure bet, but we can look at past events and how the property market has reacted. Property prices increased following the UK Prime Minister’s election in 2019, and the stock market has also seen an upturn after the announcement of the new US president, Joe Biden. Furthermore, when property experts have compared the global pandemic crisis to that of the financial crisis in 2008, the property market has seen a very different result. House prices have reached an all-time high despite the hardship the economy has faced and could recover much quicker than it did the first time around.
Now the UK and other parts of the world are rolling out the new Covid-19 vaccines, with the intent to have the country back to some level of normality by spring 2021. So, should we expect a rise in property prices as a result of the vaccines? According to UK property specialists RWinvest, it’s certainly possible. Perhaps those approaching the property market with caution will now feel more relaxed when it comes to purchasing a property. For UK investors, they not only have the new level of certainty thanks to the vaccine, but can also take advantage of the stamp duty tax holiday up until 31st March 2021.
Some property investment agents believe that if the vaccine is rolled out as expected and normality resumes before summer, then there is a good chance for the property market. We’ll have the rest of the year to make up for the loss at the start of 2021, especially if travel restrictions remain in place, as people may opt to invest in property instead of going on holiday. Overall, the coming year’s property prices will hugely rely on the Covid-19 vaccine outcome and whether the predictions become a reality.