The housing market is never simple and with the UK becoming the first country to approve a Covid-19 vaccine will help to stave off a housing market downturn next year? Many property experts are hoping it will. Enable’s IFAs have seen housing markets go up and down. It is always hard to predict even in the unusual circumstances we find ourselves in now.
Jamie Durham a PWC economist says that the house prices and transaction volumes are still being propped up by pent-up demand following the closure of the market in the first lockdown and people rushing to take advantage of the stamp duty holiday. Durham says: “Transactions in the first 10 months of 2020 are nearly 20 per cent lower than at the equivalent point in 2019, which is equivalent to around 180,000 transactions.
“While some of these transactions may have been put off completely, there is likely to be a sizable number of people who delayed their purchase, but are still looking to move. “The realistic prospect of a vaccine, and the potential to return to a version of ‘normal’ by Easter, may help to mitigate the risk of a more severe downturn in house prices in 2021 than would otherwise have been the case.”
Former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “There’s no doubt rising hopes of a reliable vaccine at the end of October/beginning of November were a shot in the arm not just for the economy but the housing market just as we were starting to see the initial post-lockdown surge begin to fizzle out. “House prices and transactions have continued their inexorable rise as pent-up demand has been boosted by the stamp duty holiday, “we expect buying and selling activity to continue – albeit at a slower pace but with no severe price correction, even when the chances of taking advantage of the stamp duty concession fade or die.”
Enable’s experienced IFAs can help you try and get back to normal with your hose move in 2021 with support for mortgages, savings and investments.