The Housing Market 2021

We are fast approaching the middle of February, which means March and Spring are in sight.  I’m sure for many Spring will be very welcome, longer days, lighter nights, better weather – de-icing cars in minus temps is never pleasant. The big question is: what does this mean for the housing market?

Optimism

Well, spring always brings optimism and positivity, which we are all desperately craving at the moment.  This optimism and positivity will hopefully continue within the housing market.  Despite numerous lockdowns and the current situation, the housing market has so far remained strong, which gives us hope.  When the country has gone into recession in the past or not been in a good place, the housing market is usually the first to feel the effects, fortunately, that hasn’t happened this time.  The opposite is in fact true and hopefully this trend will continue.  However here are a few things to think about in terms of the market going forward.

Stamp Duty

There is a lot of talk regarding stamp duty and whether or not the government will extend it.  The stamp duty holiday was put in place to stimulate the housing market as we came out of the first lockdown and was never intended to be permanent.  Having said that there was a debate in parliament last week re various options. However, no final decisions have been announced, which has created a lot of talk and predictions.  Some industry experts are taking this as a sign that it will end in March as planned, others are saying there might be a soft end, so that any sales already in progress won’t suddenly be subject to the tax.  Then there are some experts that are of the opinion that any new sales agreed between now and the end date will also be exempt.  I must stress this is all speculation and until the government makes an official announcement, second guessing doesn’t really help anyone or do the housing market any favours.  The only guarantee we have as originally stated is that it won’t be permanently abolished.  Whatever happens there will always be doom merchants who think that unless it is extended the market will collapse…   Fortunately, there are also lots of other reasons to think the market can remain strong.  Here are just a couple of reasons to remain positive:

Vaccine and Lockdown Easing

The UK is up there with a couple of other countries in clearly leading the way with its vaccination program and is on target to get everyone vaccinated within the time frames set out.  According to reports in various newspapers this week, early indications show that just one dose appears to be very effective at slowing transmission, even more promising is the WHO’s decision to back the UK’s 12-week period between the first and second dose of the AstraZeneca/Oxford vaccine.  A great shot in the arm for the future in more ways than one… 

It should allow the country to slowly start to get back on its feet and open up again.  This will allow people who have either wanted to move or thinking about it, but not been able to due to shielding or just concerned about moving during a pandemic to start the process.    Lockdown easing may also mean people may need to relocate in order to get a new job and there will be a huge demand for convenient and affordable housing across the country.

It goes without saying that the devastatingly high death toll is by far and away the worst thing to happen throughout this health crisis.  However, as harsh and callous as this may sound it could have a positive impact on the market as we see more and more probate properties come up for sale, which in turn will help keep the market going.

Spring and Summer

No matter what the situation, there will always be people who have money to spare, are bored of their current homes maybe outgrown them or looking to downsize etc and want to move.  Spring/summer has traditionally been the most popular time for sellers to market their property and there is no reason for this year to be any different.  A few reasons why this time of year is a perennial favourite are: longer and brighter days for viewings, gardens are looking better from having their first cut of the season, flowers are starting to bloom adding some much-needed colour. Many people do the stereotypical “spring clean” so their homes are always looking at their best. 

No Time Like the Present

For those of you that have decided to sell in the coming weeks and months, it is always a good idea to make sure your home is ready for marketing.  I am not suggesting spending fortunes on structural work or putting in new kitchens and bathrooms.  What I do recommend is making sure any lawns are neat and tidy with the grass cut.  Any dirty marks on walls etc are removed, a fresh coat of paint never goes amiss when trying to hide marks on walls, but again don’t spend lots of money.  At this point it is all about minimal money and effort for maximum outcome, let your chosen estate agent do all the hard work to sell your property.

Till next time…