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Summary
- Rightmove PLC, the largest online property in the UK, has projected that the house price would grow by 4 per cent in 2021.
- The current figures indicate that the asking price of properties was 6.6 per cent above the 2019 price
The house prices are set to rise at least by 4 per cent in 2021. This was predicted in the house price index released by the UK's largest online property site Rightmove PLC (LON: RMV). The website stated that the data proves that there is a strong possibility that people will continue to buy big houses despite the ongoing uncertainty. But the growth will be slower than this year.
Since the world has been hit hard by the Covid-19 pandemic, there have been lot of changes. Although most businesses have witnessed a rough patch due to restrictions and lockdown, a few sectors like the property sector in the UK saw decent growth.
Due to the pandemic, the housing market witnessed a mini boom. House prices touched new heights and set new records and mortgage approvals are at the highest level since the financial crisis. The affluent buyers have taken advantage of the low interest rates and a tax holiday and bought new houses.
The British real estate portal added that the market would retain its momentum despite the rising unemployment and stamp duty deadline, which is due to end in March.
The figures revealed by Rightmove indicated that the asking prices for property between 8 November and 5 December declined 0.6 per cent in comparison to the last month but were 6.6 per cent above the previous year's price. There is an increase of £19,920 to £319,945.
Interesting Read: UK House Prices at Highest Since 2016: Stock performance of Rightmove (LON:RMV) & Barratt (LON:BDEV)
Tim Bannister, Rightmove's Director of Property Data, said that the housing market is likely to be quiet in Q2 unless there is an extension granted to the stamp duty holiday. However, even if it is removed, many buyers will not be affected, though it may lead them to reduce their offers to some extent.
The government had announced a relief measure for the housing market in July in the form of stamp duty holiday for properties under £500,000. The tax cut, which is supposed to come to an end on 31 March, has led to a slew of transactions in the last few months as buyers are eager to get their sales done before the deadline.
Despite the restrictions due to the pandemic, property markets in England, Northern Ireland, Scotland, and Wales are still operating at a decent scale with in-person house viewings and home relocation.
