According to a housing market forecast, the average price of a house is set to grow by 4 per cent over the next year, with the market set to outperform next year.
According to Rightmove’s House Price Index report, the national average will increase partly due to an exceptionally busy first quarter, in which up to 650,000 sales currently going through conveyancing will be finalised.
This year was an unexpectedly strong one for the housing market, with prices increasing by 6.6 per cent compared to 2019, with the momentum caused by the stamp duty reductions carrying the market through the rest of 2020.
The market has the potential to carry over some of the momentum from this year in the face of a range of uncertainties. How the market will respond to the end of the stamp duty holiday will be the major story in 2021, however, there are other factors to consider.
The demand for homes and the circumstances that have fostered this will continue into 2021, and with some people having access to cheaper mortgage rates, sales are expected to remain strong.
With demand continuing to exceed supply and capacity, as well as the market, being typically strong in January, the first signs of the market slowing down to pre-pandemic levels will appear in early February.
It becomes far less likely a sale can be closed before April the closer to the 31st March deadline a sale is agreed.