The housing market will continue to show resilience as the pandemic continues into 2021 according to experts. Rightmove, an online property lister, expects house prices to increase by 4% next year. The optimistic outlook for growth in the midst of a pandemic is not surprising for those currently shopping for property. The demand is strong as buyers seek more appropriate dwellings for their pandemic lifestyles.

The house prices for the last half of the year have shown that buyers are pushing aside any worries for the economy and are instead taking advantage of the buying opportunities while seeking their best place to live, work, study, entertain, and endure lockdowns.

Not only are there low interest rates attached to mortgages, but there is also the stamp duty holiday for any properties under the purchased level of £500,000 to motivate buyers. Purchasing a home now is allowing one’s deposit and investment level to go toward a higher valued property. 

Rightmove’s report indicated that buyer demand is 53% higher than this same time last year.

Tim Bannister, Rightmove’s Director of Property Data remarked, “Our 2021 forecast of a four percent price rise is more conservative than the unsustainable 6.6 percent 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 make 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.”

The spring is usually a strong season for the housing market, but it is thought the usual boost to the market will come earlier as home buyers seek to complete their buying process before the stamp duty holiday expires or before lenders begin to withdraw their current low interest deals.