What does the property market look like going into 2021?

housing market
stamp duty
lockdown
Can we predict what will happen to the housing market in 2021?

The fireworks have dazzled, the champagne has fizzed and the new year is here. After such an unpredictable 2020, can anyone claim to know what 2021 will bring? Rather than take a guess (albeit a pretty educated one) we are going to explore what the property market looks like now…

First thing’s first, how does lockdown impact the housing market? The good news is that, currently, actions associated with moving house are exempt from the ‘stay at home’ restrictions,; this includes property viewings. So, if your New Year’s resolution is to buy or sell, you’re in luck.

Construction is also allowed to continue. If you’ve got your eye on a new build, the lockdown shouldn’t cause much delay. For the latest information on how the restrictions impact your local area, give us a call. Going into January, there are also far more mortgage options available than there were six months ago, including 90% LTV options. That is good news for first time buyers, prospective landlords and house movers alike.

The increased number of options also allows much more choice for current property owners who are looking to remortgage; you may find you can switch to a better rate than your current one. However, there can often be costs associated with changing mortgage lenders so it’s best to check with us before jumping in.

We did say we wouldn’t be guessing what may happen in 2021, but here are a few tiny predictions – we couldn’t resist! Mortgage rates may start trickling back down, along with house prices, as the rush felt in the second half of 2020 settles.

A lot hinges on how the market reacts to the end of the Stamp Duty holiday. Currently, the government doesn’t intend to extend the holiday any further. We won’t go as far as the Kaiser Chiefs and predict a riot, but it does seem likely that the deadline in March may cause collapsed chains and frustration. If you’re in the process of buying or selling, talk to us and ensure you have a realistic idea of whether you’ll complete in time.

Whatever the year will bring, with us by your side, you’ll be prepared for it. Happy New Year!

If you’d like to discuss the options available to you, contact us today.

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