As the UK enters another round of production suspension measures, we are concerned about the UK rental market’s impact. The lock-in may exacerbate occupancy challenges in the Greater London area and increase prices in pandemic destination cities
Amid all the pessimism and events in the summer of 2020, we still have good news for British homeowners who still hope to sell in the next five years. Prices are expected to rise, and rental prices are also expected to rise.
The housing trends and rental real estate trends in the UK reflect conditions in other countries. Considering the demand at the end of the 2021 pandemic and foreign buyers repurchasing real estate, we will discuss some new trends below.
Rightmove And Homelet Report For 2021
“There are many variables in 2021, so this is not an easy one to talk about, but with Rightmove’s unique leading indicators of buyer and seller behavior, we are confident that the real estate market will continue to exceed general expectations next year. Our forecast for a 4% price increase in 2021 More conservative than this year’s unsustainable national average of 6.6%. — Tim Bannister of Rightmove
- Rightmove’s 2021 forecast that the national average price will increase by 4% by 2021. They attribute this to buyers treating housing as a top priority.
- The first quarter of 2021 will end as the spring stamp duty draws to a close. Have a lot of property
- They predict that price increases will slow in 2021
- House prices rose by 6.6% in 2020 (the median increased by £19,920 to £319,945), despite a small monthly decline of 0.6% (£-2,080).
- Homelet said the average rent in the UK is currently £974, an increase of 2.9% from November 2019 (£947)
- Wales has the highest monthly growth rate (+2.4%), and the Southwest has the highest annual growth rate (+8.6%)
- The largest decrease in rental prices in Greater London (down -1.4% compared to the earlier month) contrasted with a similar period last year (down 4.4%)
What Caused the Rise in UK House Prices?
The reason for the price increase? Let’s list all of them:
- Strong buyer demand from buyers with abundant stocks, so affordability and unemployment will not be a problem.
- In the ongoing pandemic, the family is more important.
- Inventory increased slightly
- Migrating from London to the suburbs and northern England and Scotland
- Low mortgage interest rates
- Stamp duty holiday
- Due to the pandemic shutdown and suppressed demand
- Speculation as the economy improves and foreign buyers return.
In the previous update of our 2020 UK real market forecast, we predicted that house prices would rise and housing demand will rebound. Actually, do better. Rental prices in the UK are also increasing.
More Exorbitant Prices and Tightening Supply
If you wish to buy a house near London, Manchester, Liverpool, Birmingham, Bristol, Sheffield, Cambridge, Leeds, Glasgow, Edinburgh, Leicester or Swansea, you will find it more competitive
House prices in the UK are relied upon to be 2% to 3% higher than in the same period last year. In August (house tracking), prices increased by 2.6% to an average house price of £224,123. Housing demand is 39% higher than the same period last year.
Some housing experts have pessimistic forecasts for 2021, with prices falling by over 14%.