Has the real estate boom reached its apex? On the subject of future property values, experts are split.
The housing market has exploded in response to the coronavirus crisis, as hundreds of thousands of people throughout the UK seek greener pastures as the pandemic forces many of us to rethink our living arrangements. But have we reached the apex, and what will happen to home values in the months ahead? Many people have been moving to the countryside for larger homes with greater outside space as a result of recurrent city lockdowns, which has resulted in sky-high housing prices across practically the whole UK. House prices are now a whopping 13% higher than they were at the onset of the coronavirus outbreak, but while high property prices are a seller’s dream, purchasers aren’t so enthusiastic.
While the Stamp Duty holiday sparked a surge in homebuyer demand after the first lockdown in 2020, the tax cut’s aftershocks are likely to linger for some time, as buyers aren’t searching for a new place to live and change their rental status, but for a place to call their own permanently.
Prices were driven up by bolstered savings created by the lockdown and low mortgage rates, as well as a longing for the countryside and spacious family houses.
Between 2022 and 2024, according to a new Hamptons estimate, property values would grow by up to 3.5 percent every year.
After a record year of activity this year, Hamptons predicts that more properties will be sold in 2021 than in any year since 2007.
According to the Hamptons, the summer of 2021 represented the height of house price rise, with average prices 4.5 percent higher at the end of this year than at the end of 2020.
However, the market, like most things, rises and falls, and analysts are split on what will happen next in the UK housing market.
The market’s cooling trend, according to David Carter, founder of House Partnership, may continue for a few months before heating up again.
“The property market is like an oil tanker – sluggish to cool down and slow to get moving again,” he told this website.
“Experts have been anticipating an end to the frantic housing market for a some now, and we have seen it throughout,” says Brinkwire.