How might the market move throughout 2021?
We have predicted capital appreciation in the East Midlands of 5% for 2021, but how will the market move throughout the year? Here is our best educated guess;
The closing months of 2020 were chaotic, rules complex and businesses unable to make any forecast or any budget. There were certainly signs of pain on the high street.
We kick off 2021 with marginally more certainty; there is a vaccine, we largely know what Covid is and how it affects people, we have seen the impact of the virus for the past (nearly) 12 months. We have seen how the Government has handled the pandemic, and we are well versed in the needs for lockdowns. We have Brexited, like it or not.
We see a glimmer of hope. We cannot forecast with any certainty whatsoever, but from a business perspective we think we might be nearing the end. The second half of 2021 should be better than the first half. Come 2022, the property market will enter a new phase of growth. We expect to see a release of pent-up property demand which will drive prices up.
Confidence and stability will return to the UK housing market. It has not floundered in the past 12 months and we see no obvious reason for it to weaken any time in the next 12 months.
So, the first half of 2021 will be steady, stable. The stamp duty incentive is due to finish end of March. Although a welcome incentive and a potential rush of transactions to meet this deadline, we do not believe it will have any material impact on overall prices.
In the second half of 2021, a small seasonal lull over the summer, then with potential stability and hopefully some semblance of normality we expect the market to continue to move up.
For anyone considering selling their home or their investment property we urge you to contact us sooner rather than later. Good sales are often opportunistic matching the right buyer to the property, and we can only do this when we know your intentions.