What's The Deal With UK House Prices?
The year is inching closer to the end at with it is a plethora of changes. The pandemic has shifted the trends and changed the way we do business. It has reshaped the general psyche and has dictated our wants, including what we want in a home.
The website Zoopla reported that buyers are no longer going after open-plan living, searches have declined in popularity. Instead, the website has found a sharp increase in home office searches and gardens.
The new trend was dubbed a 'race for space' as householders are searching for bigger homes. Zoopla's most common search terms also include words such as detached, secluded, and rural. A clear trend away from city living and towards the country for bigger homes.
We've reported in the past months of the house market boom. The surge can be credited to pent-up demand, the stamp duty holiday, or the drop in prices.
According to the Guardian:
"The average price of a UK home started the year at £239,927, according to the mortgage lender Halifax, dropped back towards £237,00 after lockdown one, then rocketed to £253,243. Between the end of June and the end of November, prices experienced the fastest five-month gain since 2004."
Where are the prices rising and falling?
The biggest price rise in 2020 according to property website Rightmove is in Greater Manchester. Eccles is four miles west of the city centre and has been called the number one property hotspot of 2020.
With semis and three-bed terraces, the average prices in this area have jumped by 16 per cent this year. The suburb has seen a price rise from £184,299 to £213,706.
Chadderton has also seen a price rise up to 10.9 per cent. Middleton is also reporting a 10.8 per cent rise. In Liverpool, Wavertree prices went up by 12.2 per cent.
But not all areas are experiencing price increases. The more upscale property town of Sevenoaks in Kent experienced the biggest price fall. Rightmove has reported that property prices fell by £12,500 in value.
House Prices in Brexit
Amid Brexit, property experts have expressed their fears and anxieties over the state of the market. For many, the no-deal uncertainty can only spell out a perfect storm that will negatively impact the housing market.
Speaking to Express, Open Property Group Managing Director, Jason Harris-Cohen said,
"At present, we have a magnitude of economic and political uncertainty, however until now, the housing market has defied the gloom.
"A no-deal Brexit will create further economic problems and significantly affect GDP (Gross Domestic Product).
"There is also the fear of the unknown, which will hurt consumer confidence, and in turn, spending and investment in the UK."
"While job security is going to be a major challenge all across the UK, especially when furlough comes to an end in April, people will quite likely be reluctant to want to move home while worrying about their jobs.
"So, the demand for new properties will take a hit and, as with any product, a lack of demand will mean prices will inevitably fall."
On the other hand, head of specialist mortgages at Pure Property Finance, Chris Evans said:
"In my opinion, Covid will be a bigger detriment to house prices than a no-deal Brexit will be. All this being said, providing a vaccine rollout is successful and efficient, I'd like to think the housing market will recover in good time as confidence comes back into the market. I think 2021 will be challenging, but I am hopeful that by the end of the year things will be back on the up."
Interview Quotes lifted from Express.co.uk
