Here is the latest House Price Index brought to us from our partners at Rightmove:
2021 forecast: 4% price growth as housing priorities outweigh uncertainties
- Rightmove forecasts robust 4% national average price growth in 2021 as housing priorities stay high on people’s life agendas, though price rises for newly marketed properties will be at a slower pace than this year
- 2020’s unanticipated market momentum sees prices finish 6.6% up on 2019 despite a fall of 0.6% this month
- Busy Q1 expected as stamp duty deadline approaches, with logjam of 650,000 properties currently changing hands – this huge number is unchanged on last month due to strong sales agreed for this time of year
- Slower Q2 as average tax saving of 1.9% of purchase price in Great Britain due to end, but ongoing demand and cheap mortgage rates available for some will help to support continued modest price growth
- Uncertainties remain in 2021, but housing needs and fresh-start mentality suggest the market will continue to outperform, as shown by 53% more prospective buyers contacting estate agents than at this time a year ago
Overview
Rightmove forecasts a robust 4% national average house price growth in 2021 as there is strong evidence that people will continue to have their reprioritised housing needs high on their life agendas. The unexpected market momentum of 2020 overcame the unknowns of the pandemic and associated economic fallout, and though headwinds and uncertainties remain, demand for housing and buyer affordability appear to be strong enough to outweigh some of these dampening effects. Rightmove does however predict that the price rises will be at a slower pace than this year, which finished up by 6.6% (up by £19,920 to £319,945) despite a small monthly fall of 0.6% (-£2,080). The stamp duty holiday has undoubtedly added some extra momentum, but buyer demand was already very high prior to its announcement in July, and remains remarkably resilient at 53% higher than this time a year ago, despite the decreasing likelihood of completing a purchase by 31st March if it is agreed now. Having the biggest home-hunting audience in the UK, Rightmove has unique insight into future demand for property, and this, alongside other evidence, underpins our 2021 forecast of a 4% rise in the average price of property coming to market.
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