In this three-minute read, we look at the long-term forecasts for the housing market and what they mean if you’re thinking about moving.
After one of the most unusual years on record for the housing industry, the latest market predictions from a major property chain make for interesting reading.
Think back to March, when the housing industry screeched to a halt for more than seven weeks during what is typically a busy time of year for property sales.
Then jump ahead to May and June when the UK’s market re-opened – and demand rocketed. A month later, the Stamp Duty holiday was announced, leading to feverish activity from June to August.
After so much fluctuation, it’s understandable that people mulling over whether to sell up or stay put might ask: ‘what’s next?’
According to a report from Hamptons International, the outlook over the next four years is for steady growth.
It forecasts house prices in the UK to rise by 2% this year and by 8% over the next four years.
HMRC is also forecasting improvement, predicting a steady rise in completions, year on year over the next four years, in line with economic recovery.
Many industry insiders have been surprised by the resilience the market has shown in 2020 (let’s face it, it’s been one helluva year). Looking ahead, Hamptons notes that growth is expected to rebound to 8.7% in 2021 (assuming there is an EU trade deal).
Incomes are also expected to rise, by a smidgeon this year (just 0.2%, but every bit counts, right?) and 2.7% in 2022.
What Does All This Mean for Those Contemplating Moving?
For those weighing up their options, but who aren’t ready to make a move just yet, these market forecasts, along with the fact interest rates are low, will most likely prove reassuring.
Even if people are not in a position to take advantage of the Stamp Duty holiday (which ends on March 31), if their priorities or circumstances change, there will still be plenty of good reasons to act.
Consider too that most of us move for lifestyle reasons. Families grow, people retire, relationships blossom (or end) and employment opportunities change.
Major life events don’t necessarily mirror property trends. For most of us, moving is a big decision and we don’t do it on a whim. We weigh up the pros and cons and ponder our next move in our own time.
A Positive Outlook
This has, so far, been a year of famine and feast for the property industry, of low activity followed by hyperactivity. But remember, most years aren’t quite so dramatic.
The most recent forecasts should give potential-movers in the North East, the confidence to make decisions on their own terms for the mid to long term.
If you’ve got any questions about the property market or would like to get advice specific to your situation, get in touch with us here at Castledene. We’re here to help.