A 2021 Property Boom?
Following an unprecedented level of property transactions in 2020 (£300bn – a 26% increase on 2019) experts are predicting another busy year for the property market.
House prices were at a six year high in December and in December annual growth in property prices accelerated to 7.3% up from 6.5% in November according to the Nationwide House Price Index. The average price of a property is 5.3% higher than it was just before the pandemic in March.
There were fears that the effect of Covid-19 on the economy would cause the property boom to take a downturn in 2021 with falling house prices, but strong growth during the most recent lockdowns has boosted confidence among analysts.
Zoopla expects annual price inflation of around 5% in Q1 of 2021 before slowing to 1% by the end Q4.
The fact that the UK property market has demonstrated resilience during 2020 is encouraging for this year’s outlook, especially as there is light at the end of the tunnel with a vaccination programme underway.
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