How Does 2021 Look For Property Sales?

Much was written throughout 2020 about house sales and property price drops. In the midst of a global pandemic, with unemployment rising, millions furloughed and a Brexit ‘no deal’ a real threat, there were forecasts of up to 15% reduction in house price values. Thankfully a little order has been restored, but there are still many issues and influences that will impact house sales and values for the next couple of years. We are far from being out of the woods yet.

Brexit, Stamp Duty, and Completions

 A perfect storm of pent-up demand due to a 7-week pause in the market, the stamp duty deal offered by The Chancellor, and fear of a Brexit no-deal worked for and against the property market. But the biggest exodus of property owners from London in a number of years added weight to the argument that people wanted more space, inside and out. A city without access to the fundamentals that make it a city – restaurants, pubs, clubs, entertainment, and the general hustle-bustle means that it fails to be a city, and many people probably awoke to the benefits of the sounds of birdsong and growing tomatoes for the first time. Out of city property sales benefited.

Propway saw an increase in website traffic on Christmas day and particularly Boxing Day last year, suggesting that interest is still very high in relocation. Statistics gathered nationally show that the average move distance was 40 miles, with rural areas such as Nottinghamshire and South Yorkshire benefitting, for a wide variety of reasons.

The stamp duty issue is a market aberration that may or may not be continued or extended for existing purchasers keen to maximise the opportunity before it finishes at the end of March. The biggest threat to property sales and values is now unemployment, but the strong economic recovery after lockdown 1 gave the economists confidence. This looks as if this can continue through 2021, with the Covid vaccines giving economists confidence that the light at the end of the tunnel is very bright.

So a mixed set of unique circumstances have left most learned economists and property experts predicting a short term dip in enquiries, sales, and values, followed by a gradual recovery from Summer, climbing back to normality over the next couple of years.

Perhaps a period to maximize every opportunity available but things could have been much worse.