UK House Prices 2020 See Continuous Gains
According to the latest House Price Index from Halifax, UK house prices grew 6% on a yearly basis in December 2020 with continuous gains for most of the year.
Halifax has revealed that the market will continue to rise over the next few months as we approach the LBTT/stamp duty deadline, but that unemployment and constrained economic recovery will cause a slowdown in house prices as we move towards Q3 and Q4. However, several market commentators believe that while unemployment is a threat to property prices, demand will remain strong given that it still costs less to own than to rent given that borrowing is currently cheap.
What’s more, with a move towards a more permanent arrangement for many people to continue working from home as companies have seen the savings and benefits available, there will still be demand for more space to accommodate this new normal. Extra space is non-negotiable for many following the lockdown and there are thousands of buyers all vying for more space, further pushing up the price of larger homes. This shift in priorities could last a generation.
Although the LBTT/stamp duty deadline will impact the market, the desire for more space and larger homes will trump having to pay this additional tax from March onwards.
Talk to us at Clyde Property if you want to find out more about prices in your area.
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