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.

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is not authorised or regulated by the Financial Conduct Authority to provide regulated advice. The purpose of the Content is to educate and inform. The Content 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 stocks of the company(s) or engage in any investment activity under discussion. The Content is guidance about the different types of investments that are available and sets out general principles to continue before making investment decisions. Kalkine Media is neither authorised nor qualified to provide regulated investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from an appropriately authorised and/or qualified financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music 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/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.