What does 2021 have in store for the property market?

property market

The UK property market has seen numerous changes and updates during recent months. As we enter a new national lockdown, many are asking questions about the future of the market. The end of 2020 saw heightened calls for the government to extend the stamp duty holiday. Fear of a “cliff-edge” in the market raised concerns, but the return of high loan-to-value mortgages was welcomed at the end of the year. As 2021 kicks off, there is plenty of speculation on what the coming year has for the market.

How will the national lockdown affect the property market?

Following the announcement that we are entering a new national lockdown; the government has confirmed that the property market will remain open. It is still possible to move home, which is positive news for many. There are thousands of transactions currently underway that can now go ahead, which is great to keep the market moving. However, strict safety guidelines must be followed, with social distancing and PPE mandatory for all viewings and face-to-face meetings. The Ministry of Housing, Communities and Local Government is updating their advice regularly, so we recommend checking if you have a move underway.

Will the stamp duty holiday be extended?

In light of the new lockdown, the industry is seeing heightened calls to extend the stamp duty tax holiday. The planned 31 March deadline draws ever closer, with thousands of transactions relying on the tax break currently underway. Reports show almost a third of buyers will pull out of their purchases if they do not meet the deadline. As they are relying on the savings afforded by the tax holiday, any delay taking them past the deadline would cause them to discontinue their purchase. As a result, many are calling on the government to change its stance as the end date approaches. An extension or tapering of this date would allow more transactions through and keep the market stable.

High loan-to-value mortgages return to the market!

The return of high loan-to-value mortgage deals is fantastic news for the UK property market. New products have been launched by lenders including NatWest and Barclays. As more options are reaching the market, a variety of mortgage deals are available to buyers with smaller deposits. With market demand still so high following the effect of the first national lockdown, the increase in mortgage options will allow many more people to move home. This is a positive sign to start the new year, and we look forward to seeing more deals return to the market throughout the year.

What does this mean for the property market?

The property market will remain open during the new national lockdown. This is key to keep the market moving. But concerns are still being felt for the stamp duty holiday deadline and the effect that will have on the many transactions currently underway. Although mixed with uncertainty, there are positive signs for the market. The return of more mortgage deals means that lenders remain confident. Keeping the market stable is essential as we begin 2021 and with the market remaining open, we have many reasons to hope for an exciting and positive year ahead.

Contact Move Home Hub

Move Home Hub is available seven days a week to support you on your conveyancing journey. We understand you might have questions about the future. So, our dedicated team of advisors is always happy and ready to help. Contact us today for more information!

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