As 2021 gets underway, there’s no denying that we’re all still living in very uncertain times as the impact of the Covid-19 pandemic continues to spread across the country. However, one positive piece of news is that despite the extraordinary circumstances we’re all facing at the moment, the property market is set to continue moving this year - and at Barrows & Forrester that is something that we are really excited about!
With that in mind, in our latest blog we kick off the next 12 months by taking a look at 5 reasons the property market will keep moving in 2021. Read on to find out more.
1. Stamp duty savings
Despite the latest lockdown coming into effect, the property market remains open ahead of the government’s scheme to scrap stamp duty coming to an end on 31 March 2021. As part of this scheme, no stamp duty needs to be paid on any main property that is worth up to £250,000, offering a great incentive to buyers especially. Although no plans to extend it have been announced as yet, this of course could change and the rumour mill at high levels of Government believe that it is being considered – so watch this space.
2. Construction of new builds
In the third quarter of 2020, the number of new homes being completed increased by nearly 50%, and at the start of this year the construction of new builds is still going ahead. In addition, housing demand continues to grow with 240,000 - 250,000 extra new homes needed each year in England in order to keep up with the demand of a projected 210,000 extra households on an annual basis.
3. Banks continue to lend
The good news is that despite the uncertain economic situation around us and mortgage limits being lowered, banks are still lending – although there are less deals compared to normal years. As the 2008 property crash happened due to the fact that banks had stopped lending, this is an extremely positive sign as we look forward to the year ahead.
4. Buyers have more opportunities to save
Another positive outcome of lockdown is that potential buyers have more opportunities to save than ever before, with those in work putting their usual disposable income for travel, holidays, pub visits and food into their savings accounts in order to buy their first home or upgrade to a larger property.
5. Changing circumstances driving demand
One of the biggest impacts of the pandemic has been on family circumstances. Sadly, an increase in deaths and divorces has lead to families upscaling or downscaling, and therefore forcing people to adapt their living situations as a result.
If you are looking to sell your property or buy a new one in 2021, at Barrows & Forrester we are here to help. Get in touch now for expert advice on how to get your home on the market or alternatively find the home of your dreams!
If you're looking to buy, sell or rent your home please give us a call on 0121 296 2600 for an informal chat about property.