Is the UK Housing Market near a standstill state?

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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.

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