Should you sell in 2021?
House prices hit an all-time high in December last year but with the lockdown rules still in place and stamp duty rearing its ugly head again will we see prices fall?
The average property in Dec 2020 was selling for selling for £253,374, a cool 14k more than last year. We think this is most likely due to the stamp duty holiday…. Can we extend this please Mr Sunak!
Possibly the most loved man in politics right now, Rishi has temporarily avoided a housing market collapse and we are all wondering what will happen this year. Halifax suggested that house prices increased 6% in 2020 and HMRC stated that house sales were 8% higher in October 2020 than the previous year.
What we are still trying to figure out is, was this a mad rush and play to save money on the stamp duty – if so, 2021 is looking bleak.
In the Know
Russell Galley, MD Halifax, predicts that house prices will level off in 2021. A slow economic recovery is expected due to mass unemployment when the furlough scheme and business support measures end. Halifax observed a slowing of house prices toward the end of the year. – Let’s face it, we are going to have to pay this money back somehow!
I imagine the housing market will slump in the not-too-distant future but the 2008 collapse we feel is less likely. The government are pulling out all the stops to avoid any catastrophe which should help prices level out over 2021 / 2022.
We are seeing lenders becoming pickier with mortgage offerings. The majority of lenders are not taking furloughed payslips which is creating difficulties for a number of us that are looking to re mortgage now- me included! There are however lenders that will take furloughed payslips, the pay off – higher APRS.
On the bright side
The good news, house prices are looking likely to move in a significant way, not down thank god. There is widespread speculation that prices will move sideways?! Levelling out in more urban areas whilst increasing in the countryside and suburbs! Perhaps driven by you Londoners moving out to bigger digs in the sticks! Why work remotely in a shoe box when you can join those zoom calls whilst showing off your rolling views.
We will hopefully find out this evening if MP’s decide to back the stamp duty extension.
Go on Rishi!
Either way, long story short, it doesn’t look too bad moving into 2021…cross fingers, touch wood.
If you’re looking to sell your home – check out our free online valuation
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Cote & Castle covering Salisbury, Winchester, Andover & London. We want to change estate agency for the better. Everyone should get the same deal & same service. Estate agents have been charging too much for too long! We don’t tie you into a contract, we won’t charge you a fee if we don’t sell your home & there are no hidden extras.