Is the UK Housing Market near a standstill state?

Over the past four years, the UK housing prices were facing a slowdown; however, various factors led to a mini-boom in the housing market in 2020 despite the Covid-19 pandemic. At the end of 2020, UK house prices touched a six-year high, reflecting a 7.3% increase in the year. However, some experts anticipated that UK property could cool down rapidly if the unemployment rises and the stamp duty holiday ends. The cost of a home averaged nearly GBP 253,374 in December 2020, representing a 6% increase from the last year.

Some research also says that the pandemic has changed the buying behavior as the demand for less densely populated locations had increased. Even the way of viewing a property has changed. As per the UK government guidance, buyers should take a virtual view through estate agents offing house videos and should visit home in-person only when they are seriously considering a property. Also, there is a consequence of rising house prices since the younger generation is unable to afford and accumulate wealth, which can eventually broader the gap between rich and poor. Moreover, high housing prices can deprive Companies of talent as workers might refuse to relocate. In December 2020, the treasure’s independent forecasters of the Office for Budget Responsibility were anticipating 8% decline in prices in 2021. However, the pent-up demand and change in buying behavior factors also to be seen.

 


Disclaimer
The website https://kalkinemedia.com/uk is a service of Kalkine Media Ltd (Kalkine Media), Company Number 12643132. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   

We have updated our Terms of Use, Privacy Policy & Cookie Policy. By continuing to use our website, you agree to these updates.