Will COVID-19 Leave a Lasting Impression on the Property Market?

Record High House Prices

House prices hit a record high average of £254,606 in March. Data released by Halifax shows a 6.5% increase in property prices in March 2021, in comparison to March 2020. The new government support schemes in relation to COVID-19, have spiked levels of demand in the property market. Consequently, since the start of the national lockdown, prices have risen by £15,000.

Russell Galley, Managing Director, Halifax, said: “Following a relatively subdued start to the year, the housing market enjoyed something of a resurgence during March, with prices up by just over 1% compared to February. This rise – the first since November last year – means the average property is now worth £254,606, a new record high.

 

Savills predict house prices will increase by 4% this year. The growth will result from the low-interest rates, and the government schemes announced during the Spring Budget. In addition, forecasts show over the next 5 years prices will rise a further 21.1%.

Strong Market Predictions for 2021

Demand for properties will remain strong throughout 2021.

The vaccination programme is rolling out effectively. As of April 13, over 32 million people will have received their first dose of the covid vaccine. Around 7,656,205 people have already had their second dose. The UK has successfully vaccinated 39,846,781 people since announcing the vaccine programme late last year. In addition to this, lockdown restrictions are easing, and relaxed social distancing measures will soon follow. Ultimately, this will boost consumer confidence in buying and selling properties.

Currently, social distancing and homeschooling have put a hold on house viewings. Those with children or working from home are finding it difficult to conduct viewings. Whereas others are not confident in opening their homes to potential buyers amid the pandemic. However, as more people are vaccinated, we will see a rise in the number of home viewings carried out. Moreover, housing stock on the market will increase, reducing the drastic supply and demand imbalance.