“Business more than usual”: Covid-19 couldn’t stop house sell in 2021

December 27th, 2021

Prediction of Covid-era sales slump were wildly inaccurate: UK house buying in 2021 poised to be busiest since 2006.

This year is on course to be the strongest for home-buying activity since 2006, according to the main trade body for UK banks.

While the first few months of the pandemic, during which the property market shut down for a time, led to predictions that sales would slump, the reality was very different, with “Covid-era activity set to eclipse everything since the credit crunch”.

The figures indicated that “the combined boost to demand from stimulus measures and societal changes has more than offset any dampening effects from Covid-19 and wider adverse economic factors”.

The figures come hard on the heels of forecasts from the property website Zoopla and other commentators that 2021 would be the UK’s busiest year for the housing market since 2007.

While official figures have shown that the number of house sales tumbled in the weeks immediately after the end of the stamp duty holiday in England and Northern Ireland, which finished on 30 September, this followed a record surge in activity during the latter half of 2020 and earlier this year.

Alongside the stamp duty holiday, the market was also boosted by a range of factors including government guarantees for mortgages and a desire for a new lifestyle prompted by the pandemic that has led many homebuyers to relocate and prioritise properties with bigger gardens and more room for working from home.

The most recent house price surveys from the UK’s biggest mortgage lenders depict a property market that is continuing to defy many experts’ expectations. Nationwide said average UK house prices continued their upwards climb in November and were 10% higher than a year earlier, while Halifax’s latest price data suggested average house prices were 8.2% higher than a year ago in the beginning of December.

However, towards the end of the year,  house purchase activity less frenzied than it was earlier on in the year, the final outcome is not guaranteed. Interest rate rises – the first could come this month – could put a brake on the market, as could the new Omicron variant of coronavirus.

I hope this post is useful to you. Please do let me know if you have anything to add, and I will gladly consider it and add to the article if it helps my readers and don’t forget, if you need further advice/assistance or would like to reach out you can find my contact details below. 

Josephine – Your Trusted London Property Partner

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