What’s in store for the UK housing market in 2021? What will happen once the stamp duty holiday ends? Will the house prices fall? Will the average price of property rise? What should I think of the various predictions made by the housing experts? There are so many things on every potential buyer’s mind. Due to the uncertainty around the Covid-19 pandemic, no expert can predict the future of the UK housing market with any amount of uncertainty. Because of that, real estate agents, buyers, sellers, landlords as well as tenants are not sure what to expect from the housing market in 2021. If you’ve been thinking about buying a home in the UK, here are four essential things that you need to know about the housing market in 2021.
Priorities and housing demand
There has been a sudden shift in interest – potential buyers and homeowners are not looking at properties in the boroughs and the outskirts, as these properties are relatively cheaper. In a given budget, a potential buyer will be able to purchase a bigger and better home in the suburbs as opposed to the city centre. For instance, homeowners living in the city centre can probably sell their two-bedroom apartment and buy a two-bedroom house with a garage and garden in the boroughs since these properties are more affordable. For those of you who have been thinking about shifting to the boroughs and suburbs, now is the time to start getting in touch with estate agents in Shrewsbury.
Change in buyer preference
As more and more people have started spending time in their homes, due to the various lockdowns and the new work-from-home concept, there has been a sudden shift in the preference of buyers. Earlier, buyers would look for properties in the city centre so that they could be close to their place of work. Now, buyers and homeowners are looking for spacious properties with spare rooms and bedrooms that can be converted into home offices. Also, the demand for private terraces, outdoor spaces and attached gardens has gone up tremendously. Are you looking for a home in the suburbs too? Get in touch with your real estate agent for property valuation in Shrewsbury.
Virtual viewings are the future
Gone are the days when potential buyers and real estate agents would attend open houses and walk into houses with a ‘for sale’ sign in the yard. Now, virtual viewings are the only way to view houses. Of course, this has a major impact on the housing market – sellers will need to stage their properties, take good pictures and continuously update their listing online. Also, thanks to 360 virtual tours and live videos, sellers can no longer sweep things under the carpet. Now, more and more potential buyers will choose to have home inspections and conduct surveys just to ensure that what they see is what they get.
Availability of low deposit mortgages
At the beginning of 2021, low deposit mortgages were almost non-existent. Due to the Covid-19 crisis, the impact on the economy and the increasing rate of unemployment, banks and lenders had become very strict about their lending criteria. Hence, in April 2021, the UK government announced the mortgage guarantee scheme. Under this scheme, potential buyers and investors could get a mortgage for their property purchase by just paying 5 per cent of the deposit. This opened up the housing market for many first-time buyers and as well as for those buyers who could not afford to pay a hefty down payment.
Many buyers are waiting for the house prices to fall in order to make a purchase. However, there is no guarantee whether the house prices will rise or fall in the near future. Seeing as the stamp duty holiday has been extended till September 2021 and the mortgage guarantee scheme is currently ongoing, 2021 seems like a great time to purchase property and possibly save some money.