Rightmove: Property Boom To Last Another Year

The UK's largest online property site is now calling the property trends for the coming year. After the release of their house price index today, Rightmove believes people will continue to prioritise housing needs despite the current apprehensions of events. Indeed, even though there are anxieties concerning health and political matters, the demand for housing remains strong. Affordability and accessibility remain a strong concern for most.

As the year comes to a close, we've witnessed prices shoot up to unprecedented rates. However, Rightmove predicts the trend will slow down, and we will see a slower pace compared to 2020.

Many people believed that skyrocketing rates and demands for UK property was the result of the government's stamp duty holiday. Rightmove does give credit to the stamp duty holiday for gaining extra momentum, but the firm points out that buyers demand was already at a high even before the holiday was announced.

Buyer demand, when compared to percentages last year, hit a 53 per cent rate. With the holiday scheduled to be lifted on March 31, 2021, the last few months has seen swarms of transactions. With all factors considered, there has been a transaction build-up with buyers pushing to complete their sales before the deadline.

The Director of Property Data at Rightmove predicts that next year is not "an easy one to call." There are multiple variables to be considered regarding the success of 2021. The company, however, remains confident that the housing market will pass expectations.

"Our 2021 forecast of a four per cent price rise is more conservative than the unsustainable 6.6 per cent national average seen this year.

"There's likely to be a lull in quarter two unless the stamp duty holiday is extended, but for many buyers, its removal will not be made or break, though may lead them to reduce their offers to a degree to compensate for the higher tax, and indeed many sellers may be prepared to help to mitigate their buyer's financial loss.

"First-time buyers will remain largely exempt, so in most cases will be no worse off.

"The maximum savings of £2,450 in Wales or £2,100 in Scotland are considerably less decisive than the £15,000 available in England for a house costing £500,000 or more, which does however only apply to a small part of the market."

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