Skip to main content

Four Things to Know About the Housing Market in 2021


Due to the Covid-19 pandemic, the increase in the number of people working from home as well as the initial ban on property transactions in the first lockdown, the housing market in the UK was majorly affected. After the first lockdown, the housing market restarted in the UK and was allowed during the second and third lockdown. The government introduced the stamp duty holiday which definitely helped boost the housing market as well as the buyer's confidence, and due to its overwhelming success, this scheme has been extended till July 2021. Even though the demand for homes increased, the average price of property rose in certain areas and government schemes worked like a charm, the housing market was nowhere close to where it was before the pre-Covid era. While no experts can predict with any amount of certainty the future of the housing industry in the UK, here are the four things that you need to know about the housing market in the UK in 2021.

Increase in demand for properties in the suburbs and boroughs

Due to the number of people who started working from home during the pandemic, there has been a tremendous shift in the housing priorities of homeowners and potential buyers. As more and more people are spending time at home, homeowners are choosing to upgrade their homes and their lifestyles. They are now looking for spacious properties with gardens and open terraces, and maybe spare bedrooms which can be converted into home offices. So, instead of living in a smaller apartment in the city centre, homeowners and potential buyers are choosing to buy more spacious homes in the suburbs and boroughs. Since the average price of property is relatively cheaper in the suburbs, and the homes in these areas are bigger in comparison, it only makes sense for homeowners and buyers to make the shift. So, if you’re looking for new housing developments in Bracknell, get in touch with a local  estate agent as soon as possible. 

Supply will continue to remain low

While there is certainly an increase in demand for houses and real estate, the supply remains low. For starters, residential projects and upcoming developments that were in the pipeline were delayed due to the Covid-19 pandemic. Also, due to the uncertainty of the pandemic, the buyer’s confidence had drastically decreased. So, very few homeowners and property investors were actually willing to put their homes on the market! Experts feel that the sales could be much higher, but the lack of supply is the real problem. In the near future, it seems that the supply will remain low; either until the pandemic finishes or the buyer’s confidence increases, or both.

Lack of low deposit mortgages in the market

Previously, first-time buyers and investors could get mortgages with a deposit as low as 5 or 10 per cent. Now, due to the uncertainty around the pandemic and the instability in the employment status, lenders and bankers have become very strict about their mortgage lending criteria. As the number of low deposit mortgages in the market reduces, first-time buyers and budget investors will be unable to purchase properties in the near future. Of course, this will have a devastating impact on the housing market in the UK. In order to prevent this, the government has announced a mortgage guarantee scheme that will allow first time buyers, homeowners and property investors to get mortgages by giving just a 5 per cent deposit. Leading lenders and banks in the UK have come aboard this scheme, which should make the demand for ownership rise considerably. 

Change in buyer priorities over the years 

The last few years have certainly brought about a major change in the priorities of the buyer. One such trend is that most buyers are looking for homes that are eco-friendly and environmentally conscious. For example, properties that have LED lighting, photovoltaic solar panels, programmable thermostats and have energy-efficient fixtures have become very popular among conscious buyers. Also, since more and more people have started working from home and will probably continue to do so for the next few years, potential buyers and existing homeowners have started looking at properties with work from home spaces. Some buyers are looking at properties with extra bedrooms, an outhouse or maybe even a garage which can then be converted into a home office. The increase in the number of people working from home has also led to an increase in the demand for properties in the countryside, as professionals no longer have to worry about commuting to work.

Comments

Popular posts from this blog

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

QROPS pension advantages

What is QROPS pension? QROPS or Qualifying Recognized Overseas Pension Scheme is an overseas pension scheme that gives excellent retirement planning benefits. To enjoy this benefit you don’t have to have to pay any unauthorized amount. Only you have to see that it full fills requirements in order to recognize by HMRC or Her Majesty's Revenue and Customs.

Can Anybody Profit With Binary Options?

Binary options, also called digital options, are one of the simplest types of trades to understand. That is because they simply consist in deciding if a particular stock will gain or lose value in a short amount of time. That is not to say that everybody profits from every trade. But with determination, many people can learn to develop a successful trading strategy.

Get a Prepaid Debit Card

How do I get a prepaid debit card? How do you access your paycheck, social security check, or other regular payments? If you're using a check cashing service, chances are you're paying high fees that are eating into the money you need to pay your bills. Bank accounts are often no better, with more and more banks piling fees on top of fees for checking and savings accounts. Many people that cannot set up a bank account because they have had consumer debt issues in the past turn to check cashing services at retailers because they believe it is their only alternative. The problem is that these merchants typically charge a 2% to 3% service charge. Assuming you receive a weekly paycheck of $400, this fee can add up to $624 every year! It may seem like a small fee each week, but clearly that fee adds up. Someone eligible to open a checking account may think that bank accounts are a better choice for check cashing. However, recent legislature limiting banks from charging for some ser

Short Term Loan Solutions

Individuals that are in need for immediate financing have many short term loan solutions available. The type of short term loan that you need will depend on your circumstance. However, you need to research all of your options before completing an application. A short term loan is after all a line of credit. Determine Your Need Many reasons exist for requiring a short term loan. These can include a sudden emergency or other types of unexpected expenses. Emergencies that may require a short term loan include replacing your home's water heater repairs to your car. Other types of unexpected expenses include paying a higher than usual phone bill.

A few tips about how to save money on your Car Insurance

Auto insurance is often one of the top five highest expenses in a typical family’s budget. With the cost of accidents so high, States require that every automobile on the road must have at least liability coverage. In addition, since many people finance or lease their cars, banks require full coverage until the car is completely paid off. With so many requirements for insurance, it is no wonder that drivers often find themselves “insurance poor.” The good news is there are a handful of things that many drivers and families can do to reduce their insurance rates and put a little more of their hard earned money back in their pocket. Below are some of the best ways to get that premium lowered.