2020 was a good year for the housing market if we are to talk in terms of activity initially. As we move into 2021, given the rise in activity last year, some degree of deflation seems likely in the not-too-distant future, the question as always is when. The growth in sales prices reached a six-year high of 7.3 percent in December, according to the Nationwide House Price Index, following six consecutive months of jumps in the rate of annual price growth.
The positive news is that demand shows no sign of slowing just yet, November and December mortgage approvals for home purchases rose to the highest level since summer 2007, according to the Bank of England’s (BoE) latest money and credit data. In addition to the stamp duty break multiplied by the need for more space, the average effective interest rate on new mortgage borrowing was 1.83 per cent in November, according to the BoE, an uptick on the prior month but still historically very low.
My prediction or 2021- The experience of previous stamp-duty holidays suggests that sales will slow once it ends (assuming it is not extended). Working from home is likely to be a permanent feature of many employees’ lives, but others may find that commuting is still a necessity – or at least more important than it might have seemed during lockdown.
If you have any further questions whatsoever, do not hesitate to contact me directly to discuss further.
Since forming the business in 2009, George Tatham-Losh, has become highly regarded as the local go to expert for advice on maximising property values and getting the most out of property investments, regularly speaking at events and holding well attended seminars. Born and raised in Cheltenham, George knows the town and County like no other and knows what works in the area. Alongside George is a specialist team of agents with a wealth of experience to help you sell, buy, let or rent property in Gloucestershire.
Email George: george@move.uk.net
