Following 15 months of restrictions in the UK, it’s understandable that we feel a little confined. While many of us have been lucky enough to have outside space of our own to enjoy during lockdown, and homes large enough to escape the family for a bit of peace and quiet, others have found themselves in homes they have quickly outgrown and that no longer fit their needs.
Last month, the UK housing market saw prices rise by a huge 10.9% - the largest annual increase in seven years. While transactions slowed during the first lockdown when estate agents were forced to close and construction on new properties halted, the industry bounced back reporting record numbers throughout the second half of 2020. The appetite for new housing doesn’t seem to be slowing down any time soon either, with the “race for space” continuing as homeowners look for bigger homes and more outdoor space.
Recent reports state that up to a third of movers are looking to relocate completely, while 30% are searching for a bigger home. Following the first lockdown in the UK, we saw many buyers opting to leave the city for quieter towns and countryside locations as outdoor space became a priority. With many people still working from home, the daily commute has become less of a focus for those moving house, while they opt for home office space and a good broadband connection instead.
Appetite has also been buoyed by the continuation of the stamp duty holiday, as well as new schemes to help those with a 5% deposit secure a mortgage.
While the outlook remains positive for now, experts have warned that once the post-pandemic unemployment figures rise, we may see a slowdown in the housing market once again. It is fair to say however that whatever happens, the pandemic has changed buyer priorities and this in turn is likely to change the face of the UK housing market for years to come.
This article is for educational purposes only and does not constitute investment advice. This article does not amount to an invitation or inducement to buy or sell an investment nor does it solicit any such offer or invitation in any jurisdiction.
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