The last few months of 2020 have seen a boom in the property market as people try to complete a purchase before the stamp duty holiday comes to an end in the spring. As ever, the demand for property has pushed up house prices as the year comes to an end, but what will affect house prices next year? Let’s take a look at three important factors:
The end of government help
At the end of March, the furlough scheme and the stamp duty holiday are going to come to an end. This could stall the property market, as there will be less incentive for people to move to a new house. People are in a rush at the moment to get into their new homes before this occurs, which is artificially pushing up house prices at the moment but will artificially deflate them next year.
Buyers can protect themselves and make sure the house they are purchasing is worth the money they are paying by instructing a home buyers survey to be carried out by a company such as https://www.samconveyancing.co.uk/Homebuyers-Survey.
As Brexit comes into effect on 31 December, house prices could be affected. This is more likely to be the case under a no-deal Brexit, which appear to be the most likely outcome at the moment. People will become less sure of themselves and the stability of their jobs in the early part of 2021, which will affect their desire to buy new homes. This could see the property market stalling, with supply outstripping demand.
The coronavirus epidemic has hit everyone hard in 2020 and this will continue well into the new year. Lockdowns and social distancing make sellers less likely to want to put their homes on the market and buyers less likely to want to look at new houses due to the risk of the infection spreading. Although the UK is rolling out a vaccine, it won’t be until the latter part of 2021 that enough people have received it to make a difference to how we live our lives. This means that the housing market is likely to stall in the first part of the year.
Although the beginning of the year is likely to see the property market stalling, it may begin to pick up again towards the end of the year as the uncertainty eases.