In 2021, the market is on track to record its highest level of turnover since 2007 (1.5 million) Combined market activity is expected to reach £473 billion in 2021 The cost of living will rise in 2021 Headwinds are expected due to the rise in the market share and mortgage interest rates.
Property group Zoopla has predicted a record year for UK housing activity after a period of heightened activity due to coronavirus pandemic restrictions and stimulus measures.
Zoopla’s Richard Donnell said: “2021 is set to be a record year for the housing market, with the most homeowners moving since 2007 and home sales reaching nearly £500bn.”
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Zoopla predicts transaction value will be £473bn this year.
The rise in house prices came at a time when buyers were scrambling to take advantage of government schemes such as stamp duty exemptions due to factors such as a decline in housing supply.
“The impact of the pandemic on the housing market will continue, but at a slower pace. We expect market momentum to outweigh new headwinds from rising costs of living and the risk of rising mortgage rates. ” continued Donnell.
Zoopla’s research also revealed how buyers in different parts of the market responded as the pandemic progressed. Wealthy buyers were more active towards the beginning of the pandemic, but first-time buyers have started returning to the market in 2021.
Despite the housing market remaining resilient through 2021, Zoopla expects home price growth to decline significantly in 2022 as more affordable parts of the market support prices. .
“The latest data shows a turning point in house price growth, with average house prices in the UK expected to rise by 3% by the end of 2022, before decelerating rapidly.”
After a torrid summer home price rise, home prices rose just 0.1% in September, according to a recent Nationwide survey.
