UK house prices are forecast to log robust growth next year as there is strong evidence that people will continue to have their reprioritised housing needs high on their life agendas, property website Rightmove said Monday.
House prices are forecast to climb 4 percent in 2021.
In December, house prices increased 6.6 percent annually, faster than the 6.3 percent rise registered in November.
However, on a monthly basis, house prices dropped 0.6 percent after easing 0.5 percent in November.
With the expectation of a return to more normality in the second half of 2021 and a likely ‘fresh start’ mentality for some, there are sound reasons for continued positive market sentiment that will outweigh the economic, political, and health challenges ahead, Tim Bannister, Rightmove’s Director of Property Data, said.
The tax break is due to expire at the end of March, but Rightmove said underlying demand and cheap borrowing costs meant this was unlikely to lead to much slowdown in activity.
“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,” Rightmove’s director of property data, Tim Bannister, said.
The Bank of England reported that lenders approved the most new mortgages since 2007 in October, and mortgage lender Halifax said house prices had risen by the most since 2004 in the five months since lockdown ended.
Source: Business Insider