The rise in UK house prices for November 2020 was at the fastest annual rate for close to six years. When you consider there was a national lockdown in England for most of the month, it makes you realise the significant impact the stamp duty holiday has on buyers.
The average residential property price moved to £230,000 in November, a rise of 6.5% in comparison with the November 2019 figures. This represents the fastest rate of growth since January 2015.
If you are looking at the monthly figures, this represents a price increase of 0.9% on the October 2020 figures. According to Nationwide, this is the fifth consecutive month of expansion.
Reality turned out better than predictions
The annual increase was considerably higher than the rate which was expected by Reuters. They believed the rate would 5.5%, and would represent a fall compared to the 5.8% annual growth in October.
It was easy to see why the first national lockdown had such a detrimental impact on the housing market. There wasn’t a lot that estate agents could do at that time, and there was considerable uncertainty in the market.
This time, the housing market remained open, and the stamp duty holiday drove demand. Add in favourable interest rates and many people deciding to move home for various reasons, and the market is ending 2020 with a flourish.
Housing market is a bright part of the economy
Richard Donnell, the director of research and insight at Zoopla, said; “The housing market is one of the bright parts of the economy, and the government has made sure that it remains open throughout the second lockdown. With people unable to get out and about as they normally would, the second lockdown will emphasise once again the importance of the home. People will keep re-evaluating their home and lifestyle. But despite the furlough and the mortgage payment holiday schemes both being extended, the economic pressures remain.”
Richard was asked what impact the second lockdown will have on house prices. He responded by saying; “It won’t have a significant impact on house prices because the housing market is still open for business. Headline house price growth will continue to rise towards 4% by the end of the year. However, it’s important to remember that there is significant regional variation. Everyone’s homes sit in different housing markets, and what happens to values reflects local supply and demand, as our House Price Index shows.”
There is no denying the housing market experienced a boom in July thanks to the stamp duty holiday. However, many industry experts predicted there would be a slowdown in autumn. This hasn’t happened and the market has defied all expectations. There is hope that the trend will continue into 2021, but there will be challenges to overcome.
At Country Properties, we work locally, and we have a national network that ensures you make an informed decision. If you are keen to make a move in 2021, please contact us, and we will be more than happy to assist you.
In line with Government guidelines, our Biggleswade branch is open and our and lettings personnel staff are on hand to assist you. If you have any queries or need advice on property sales and lettings then please call 01767 317799 or email email@example.com.